Problem
During 1989 a wave of political change swept over Eastern Europe, raising prospects not only of democracy but also of a shift from centrally planned to market economies. One consequence might be a shift in how Western Europe uses its money: Nations, especially Germany, that during the 1980s were lending heavily to the United States might start to lend to nearby Eastern European nations instead. Using the analysis of the transfer problem, how do you think this should affect the prices of Western European goods relative to those from the United States and Japan?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.