Suppose a U.S. importer purchases "Mexican Oaxaca" cheese for $500 . If the present exchange rate is Mexican peso (MXP) 10 per U.S. dollar, and the MXP appreciates 10 percent against the U.S. dollar between the date of purchase and the date of payment, then the peso value of the invoice when payment is due is:
a. MXP 500.
b. MXP 550.
c. MXP 4,500.
d. MXP 5,500.
e. MXP 4,450.
c
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Which of the following restricts the volume of international trade?
a. stable prices b. tariffs c. the law of comparative advantage d. stable international monetary system
According to classical economists, Say's law applies to a barter economy, but it does not apply to a money economy
Indicate whether the statement is true or false
The fundamental characteristics influencing the value of a financial instrument include each of the following except:
A. where the instrument is traded. B. the size of the payment promised. C. the likelihood of payment. D. when the promised payment will be made.
The marginal revenue that would be derived from the production of the fifth unit is
A. $24.
B. $21.
C. $12.
D. $6.