According to the classical dichotomy and money neutrality, a doubling of the money supply, holding all else constant, causes prices to _____ and real GDP to _____

Given the U.S. price level P, the foreign country price level P*, and the nominal exchange rate E expressed in foreign currency per U.S. dollar, the real exchange rate RER is given by

A) RER = E × (P/P*). B) RER = E × (P*/P). C) RER = (P/P*) / E. D) RER = P / (E/P*).

Which of the following is true of resources? a. Their availability is unlimited

b. They are the inputs used to produce goods and services. c. Increasing the amount of resources available could eliminate scarcity. d. Both b. and c. are true.