Suppose the euro/yen exchange rate falls while the dollar/yen exchange rate rises. What happens to the price of goods imported into Japan?
a. Both European and U.S. goods become cheaper.
b. European goods become cheaper while U.S. goods become more expensive.
c. European goods become more expensive while U.S. goods become cheaper.
d. Both European and U.S. goods become more expensive.
Answer: B
FIN 201
- Whether real seignorage revenue increases when the rate of money growth increases depends on whether
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