Suppose the price level and value of the us dollar in year, Business Economics

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Suppose the price level and value of the us dollar in year

Suppose the price level and value of the U.S. dollar in year one are 1 and $1.00, respectively.

A. If the price level rises to 1.25 in year two, 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?

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Business Economics: Suppose the price level and value of the us dollar in year

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Business Economics: Suppose the price level and value of the us dollar in year

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