What are net exports? How will an appreciation of the peso affect Mexico's net exports?
What will be an ideal response?
The net exports of a country refer to the value of the exports from the country minus the value of the imports into the country. If the peso appreciates, exports from Mexico will become more expensive causing exports to decrease and imports to increase. Hence, an appreciation of the peso will reduce Mexico's net exports.
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U.S. net export spending falls when
A) the inflation rate is lower in the United States relative to other countries. B) the growth rate of U.S. GDP is faster than the growth rate of GDP in other countries. C) the value of the U.S. dollar decreases relative to other currencies. D) the price level in the United States falls relative to the price level in other countries.
Which of the following assertions is false?
A) The Great Depression was a typical business cycle. B) Very rapid growth occurred during World War II. C) Real GDP per capita dipped about 30% during the Great Depression. D) On average, the U.S. economy grows at a rate of 2.1%.
In perfect competition, a firm’s marginal revenue is the same as the demand curve at high levels of output.
Answer the following statement true (T) or false (F)
The market in which banks lend and borrow reserves from each other for very short periods of time (usually overnight) is the
a. federal funds market b. bond market c. asset based market d. reserve market e. open operations market