Question: Can anyone help me on these problems? Any help is welcome. Use the following information for questions 19-25 Consider the long-run value of the dollar
Can anyone help me on these problems? Any help is welcome.


Use the following information for questions 19-25 Consider the long-run value of the dollar relative to the euro over the past two and a half years in the graph below (with a value of 1.23$/euro in Feb 2018 and a value of 1.09$/euro in Feb 2020 and a value of 1.18$/euro in Sep 2020). FRED - U.S. / Euro Foreign Exchange Rate 1.24 1.22 1.20 U.S. Dollars to One Euro 1.18 1.16 1.14 1.12 1.10 1.08 Jan 2018 Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 ul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Shading indicates U.S. recessions; the most recent one is ongoing. Source: Board of Governors of the Federal Reserve System (US) fred. stlouisfed.org 19.) What was the trend in the value of each currency over the period Feb 2018 to Feb 2020? A) Both the dollar and euro depreciated. B) Both the dollar and euro appreciated. C) The dollar appreciated and the euro depreciated. D) The dollar depreciated and the euro appreciated. Consider first the period from Feb 2018 to Feb 2020. Annual U.S. output grew at 2.63%, while European output grew at 1.99%. The U.S. Federal Reserve allowed the money supply to grow by 4.76%, while the European Central Bank allowed its money supply to grow by 5.28%. 20.) Over Feb 2018 to Feb 2020, what was the expected inflation rate in the U.S.? in the EU?21.) Over Feb 2018 to Feb 2020, what was the expected rate of depreciation (or appreciation) in the U.S. $ relative to the Euro? Explain why. 22.) Explain how your answers to questions 19 and 21 relate to each other
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