Q. If inflation in New Zealand suddenly increased while euro area inflation stayed the same, there would be: (Solved)
1. an inward shift in the demand schedule for NZ$ and an outward shift in the supply schedule for NZ$.
2. an outward shift in the demand schedule for NZ$ and an inward shift in the supply schedule for NZ$.
3. an outward shift in the demand schedule for NZ$ and an outward shift in the supply schedule for NZ$.
4. an inward shift in the demand schedule for NZ$ and an inward shift in the supply schedule for NZ$.
- a. an inward shift in the demand schedule for NZ$ and an outward shift in the supply schedule for NZ$.