Everything else equal, if the dollar appreciates against the peso:
A) U.S. will export more to Mexico and will import less from Mexico.
B) U.S. exports to Mexico and imports from Mexico will decrease.
C) U.S. exports to Mexico and imports from Mexico will increase.
D) U.S. will import more from Mexico and will export less to Mexico.
D
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According to David Ricardo, an increase in government spending without any tax increase will not increase aggregate demand because
A) consumers will increase their consumption proportionately more than Keynesian economists believe they will. B) consumers will save less than they otherwise would have. C) consumers will consume less and save more to prepare for increased taxes in the future. D) the private sector is more likely than the public sector to spend any extra income on national defense.
Everything else held constant, when a country's currency appreciates, the country's goods abroad become ________ expensive and foreign goods in that country become ________ expensive
A) more; less B) more; more C) less; less D) less; more
How do rising prices slow resource depletion?
What will be an ideal response?
A fall in labor costs will cause aggregate:
A. Supply to increase B. Demand to increase C. Supply to decrease D. Demand to decrease