An increase in inflation in the United States relative to the rate in France would make: a. U.S. goods relatively less expensive in the United States and in France. b. French goods relatively less expensive in the United States and U.S. goods relatively more expensive in France. c. French goods relatively more expensive in the United States and in France. d. French goods relatively more expensive in the United States and U.S. goods relatively less expensive in France.

Inflation means a rise in the overall price level in the economy.

Answered: An increase in inflation in the United…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An increase in inflation in the United States relative to the rate in France would make:

	a.	U.S. goods relatively less expensive in the United States and in France.
	b.	French goods relatively less expensive in the United States and U.S. goods relatively more expensive in France.
	c.	French goods relatively more expensive in the United States and in France.
	d.	French goods relatively more expensive in the United States and U.S. goods relatively less expensive in France.

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