Suppose the price level and value

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

Instructions: Round your answers to 2 decimal places.

a. If the price level rises to 1.20 in year two, what is the new value of the dollar? $

b. If, instead, the price level falls to 0.65, what is the value of the dollar?

Reference no: EM13984007

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