A diagram that shows the maximum amount of one type of good that can be produced in an economy, given the production of the other is known as

Consider an economy that is greatly dependent on the U.S. economy for consumer goods and durables. Inflation will increase in the economy if:

A) the dollar appreciates vis-à-vis its own currency. B) the U.S. goes into a recession. C) the dollar depreciates vis-à-vis its own currency. D) the country adopts dollar as its official currency.

Find the real exchange rate for the following case: Assume that the representative basket of European goods costs 150 euros and the representative U.S. basket costs $200,

and the dollar/euro exchange rate is $1.20 per euro, then the price of the European basket in terms of U.S. basket is: