If, under a fixed exchange rate system, the dollar price of Mexican pesos is below its equilibrium level, then the
A) dollar is undervalued.
B) peso is undervalued.
C) dollar has depreciated.
D) peso has appreciated.
E) a and c
B
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Countries such as the United States that have large populations tend to have
A) higher trade-to-GDP ratios. B) lower trade-to-GDP ratios. C) relatively greater capital outflows. D) relatively smaller capital outflows. E) None of the above.
Historical demand curves are always suspect because their demand curves are likely to have shifted over time
a. True b. False Indicate whether the statement is true or false
Domestic consumers gain and domestic producers lose when the government imposes a tariff on imports
a. True b. False Indicate whether the statement is true or false
What are the 2 basic lessons learned about the redistributive effects of price changes?
What will be an ideal response?