To encourage more investment, Mexico has lowered its tax rates to reduce the user cost of capital. Argentina is unable to pay back its foreign debts, causing its expected future marginal product of capital to fall

Mexico's real exchange rate will ________ and its net exports will ________. A) depreciate; fall
B) appreciate; rise
C) depreciate; rise
D) appreciate; fall


D

Economics

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According to experience, what is the most effective solution to highway congestion?

a) to discount transit passes b) to discourage urban sprawl by subsidizing urban apartment rents c) to build more roads d) to set a price for access to roads, which is paid by those who use them

Economics

Use the following graph for a competitive market to answer the question below.Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the seller?

A. $750 B. $375 C. $675 D. $300

Economics

Open and explicit agreements concerning pricing and output shares transform an oligopoly into a

A. Differentiated oligopoly. B. Monopoly. C. Perfectly competitive firm. D. Cartel.

Economics