Question

If one U.S. dollar equals one euro, which of these could result if the euro experiences inflation? E.U. citizens could purchase more goods in the U.S. for less money. E.U. citizens would purchase large amounts of U.S. stock. U.S. citizens would purchase more goods from the E.U. for less money. U.S. citizens would purchase large amounts of E.U. stock.

Answer 1

Answer:

U.S. citizens would purchase more goods from the E.U. for less money

Explanation:

In this scenario $1=€1, and when inflation occurs the purchasing power of the Euro will reduce.

One will need more euros to buy goods, for example if I buy a shirt for €3 the price may now be €5. So more euros are needed to buy the same goods.

Since the dollar did not experience inflation, its purchasing power will remain the same and stronger than the euro.

Thus the dollar will be able to now but more goods compared bro the euro.