If the Canadian dollar depreciates, it means that Select one: O A. one Canadian dollar buys less foreign currency. O B. the Canadian economy is becoming less stable. Canadians are buying too many imports. C. O D. prices in Canada are rising. O E. inflation has eroded the purchasing power of Canadian money.

QUESTION 14 According to the principle of purchasing power parity, the 2001 devaluation of the Argentine peso:   a. had no impact on the Argentine inflation rate.   b. made Argentine imports from the United States cheaper.   c. decreased the inflation rate in Argentina relative to the inflation rate in the United States.   d. increased the inflation rate in Argentina relative to the inflation rate in the United States.   QUESTION 15 An increase in the money supply _____ the interest rate in the short run but _____ the interest rate in the long run.   a. lowers; does not affect   b. does not affect; lowers   c. raises; lowers   d. does not affect; raises

A car costs $20,000 in the U.S. The exchange rate between the euro and the dollar is 0.813 euros per dollar. Ignoring transportation and other similar costs, what would be the euro price of the same car in France? Select one: O a. 28,000 euros O b. 16,260 euros O c. 24,600 euros O d. 15,300 euros Check

Suppose the price level and value of the U.S. dollar in year 1 are 1 and $1, respectively. Instructions: Enter your answers rounded to 2 decimal places.a. If the price level rises to 1.25 in year 2, what is the new value of the dollar? $______b. If, instead, the price level falls to 0.50, what is the value of the dollar?$______