Which of the following is included in the M1 definition of money?

Holding nominal exchange rates constant, if inflation in Europe exceeds inflation in the United States,

A) the real exchange rate ($/€) will rise, and the euro will buy more in the U.S. B) the real exchange rate ($/€) will rise, and the euro will buy less in the U.S. C) the real exchange rate ($/€) will fall, and the euro will buy more in the U.S. D) the real exchange rate ($/€) will fall, and the euro will buy less in the U.S.

Free trade is, in essence, a roundabout way to wealth based upon comparative advantage

Indicate whether the statement is true or false