The expected rate of change in the nominal dollar/euro exchange rate is best described as
A) the expected rate of change in the real dollar/euro exchange rate minus the U.S.-Europe expected inflation difference.
B) the expected rate of change in the real dollar/euro exchange rate plus the U.S.-Europe real interest rate difference.
C) the expected rate of change in the real dollar/euro exchange rate plus the U.S.-Europe expected inflation difference.
D) the expected rate of change in the real dollar/euro exchange rate minus the U.S.-Europe real interest rate difference.
E) the expected rate of change in the real dollar/euro exchange rate plus the European expected inflation.
C
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New classical economists believe that:
a. market failure on a large scale is possible. b. disequilibrium in commodity markets demand government intervention. c. people are completely aware and informed about everything that is happening. d. wages are fixed in the short run. e. people purposefully substitute non-labor activities for work during recession.
During an inflationary period, those most likely to suffer reduced wealth are those who are holding their wealth in: a. gold
b. real estate. c. currency. d. stocks.