The price of a given basket of goods in Richland is 75 ritz. If the same basket of goods cost $10 in the U.S., the price of a basket of goods worth $1 in the U.S. is ________

Refer to the scenario above. If India pegs the exchange rate at 70 rupees per dollar, it will require ________ rupees to repay the loan in dollars

A) 700,000 B) 70 C) 70,000 D) 7,000

The supply curve of money is horizontal at the market interest rate.

a. true b. false