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



Instructions: Enter your answers rounded to 2 decimal places.



a. If the price level rises to 1.40 in year 2, what is the new value of the dollar?



$



b. If, instead, the price level falls to 0.80, what is the value of the dollar?



$