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.

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.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 5PA

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	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.