Suppose that the exchange rate between Mexican pesos and dollars is 8 pesos per dollar. If the exchange rate goes to 6 pesos per dollar, it would tend to:
a. increase U.S. exports to Mexico
b. decrease U.S. exports to Mexico.
c. increase Mexican exports to the rest of the world.
d. decrease Mexican exports to the rest of the world.
a
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All else being equal, if the prospect of a recession leads the Federal Reserve to ease monetary policy, the equilibrium value of the exchange rate for the U.S. dollar will:
A. fall. B. either rise or fall depending on whether the supply or demand for dollars changes more. C. remain fixed. D. rise.
The only way that a society can produce outside the production possibilities curve is
A) through economic growth. B) by producing efficiently. C) by obeying the Law of Increasing Additional Cost. D) to use the concept of opportunity cost.
To be a positive economic statement, an assertion must be true
a. True b. False Indicate whether the statement is true or false
How do the consumer and producer surpluses in the monopolistic case differ from those in the competitive case?
What will be an ideal response?