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For Main Industrial Countries Such as Japan and the U

Question 43

Multiple Choice

For main industrial countries such as Japan and the U.S.

A) there is much less month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run.
B) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run.
C) there is almost the same month-to-month variability of the exchange rate and price levels.
D) it is hard to tell whether month-to-month variability of the exchange rate is similar to changes in price levels.
E) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the long run.

Correct Answer: