The Mexican demand for American goods leads to the demand for:
A. U.S. dollars and the supply of Mexican pesos on the foreign exchange market.
B. U.S. dollars and the supply of U.S. dollars on the foreign exchange market.
C. Mexican pesos and the supply of U.S. dollars on the foreign exchange market.
D. U.S. dollars and Mexican pesos on the foreign exchange market.
Answer: A
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If input prices for a perfectly competitive firm increase as the output of the industry expand in the long run, the long-run industry supply curve will:
a. have a positive slope. b. have a negative slope. c. be perfectly horizontal. d. be perfectly vertical.
A permanent increase of borrowing by the U.S. Treasury to finance growing budget deficits will:
A. result in U.S. Treasury yields being higher than high-grade corporate bonds. B. result in lower yields on corporate bonds. C. cause the yield on U.S. Treasury bonds to increase, but still be lower than corporate bonds. D. result in the price of U.S. Treasury bonds rising.
Why is the interest rate on U.S. Treasury securities lower than on other types of bonds?
What will be an ideal response?
The ratio at which nations will exchange one product for another is known as the:
A. Exchange rate B. Discount rate C. Terms of trade D. Balance of trade