Suppose the price level and the value of the dollar

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Reference no: EM131092014

Suppose the price level and the value of the dollar in Year 1 are 1.0 and $1.00, respectively.

a. If the price level rises to 1.50 in year 2, what is the new value of the dollar?

b. If instead the price level had fallen to 0.75, what would have been the value of the dollar?

Reference no: EM131092014

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