Last week, 13 Mexican pesos could purchase one U.S. dollar. This week, it takes 11 Mexican pesos to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Mexico and ________ U.S. aggregate demand
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase
Answer: A
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In contrast to the post-World War II period, before 1940 the government
a. actively intervened in the economy for stabilization purposes. b. used aggregate demand management to avoid recessions. c. rarely intervened in the economy to influence inflation or unemployment rates. d. used government ownership to guarantee full employment.
If the smartphone market has only two firms, this market would be a
A. monopoly industry. B. monopolistically competitive industry. C. perfectly competitive industry. D. duopoly industry.
Privately-owned firms that accept deposits from individuals and businesses and use those deposits to make loans are called:
A. mortgage banks. B. investment banks. C. brokerage firms. D. commercial banks.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.