If the price level rises in the United States but not in foreign nations and the current exchange rate does not change, the expected future exchange rate
A) rises.
B) falls.
C) stays the same.
D) You can't tell from the given information.
B
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Which of the following is NOT correct regarding the theories of income distribution?
A) Dealing with how income ought to be distributed is a normative issue. B) The productivity standard for the distribution of income is stated "to each according to what they produce." C) The egalitarian principle of income distribution is "to each exactly the same." D) Dealing with how income should be distributed is a positive economic issue.
Assume you have $2,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level is equal to 120 at the end of the year, the real value of your savings is closest to
A. $1,880. B. $2,120. C. $1,667. D. $2,400.