When Safeway supermarkets in the United States buys strawberries from Mexico
A) it uses dollars to pay Mexican farmers.
B) it uses pesos to pay Mexican farmers.
C) it may use any currency it chooses.
D) the transaction shows up in the U.S. capital account.
B
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Suppose the economy is in a long-run equilibrium when a positive demand shock occurs. On the graphs above, show what happens to bring the economy back to long-run equilibrium, assuming that there is no policy response
In words, describe how the graph would be different, if policy makers did intervene.
Unions can be thought of as constituting
a. a monopoly element in the supply of labor. b. a monopoly element in the demand for labor. c. an oligopoly element in the supply of labor. d. a competitive element in the demand for labor.
Insurance companies perform all of the following functions performed by financial intermediaries except:
A. pooling the resources of small savers. B. transferring risk. C. supplying liquidity. D. making large investments.
How much is the APS?
C = $6.4 trillion Disposable income = $8 trillion Autonomous consumption = $4 trillion