Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If the exchange rate changes to $1 equals 8 pesos, which of the following is TRUE?
A) The dollar depreciates and U.S. exports become cheaper.
B) The dollar appreciates and U.S. exports become cheaper.
C) The peso depreciates and imports from Mexico become cheaper.
D) The peso appreciates and imports from Mexico become cheaper.
C
You might also like to view...
If the market in the figure above is a profit-maximizing single-price monopoly, the producer surplus is the area ________
A) ABH B) BFGH C) ACG D) BDEH E) ACE
One consequence of the second welfare theorem is the fact that the allocation of goods achieved through competitive markets:
A. is always Pareto efficient. B. can be extremely inequitable. C. satisfies the conditions of egalitarianism. D. is free of market failures.
How many members can serve on the Board of Governors of the Federal Reserve System?
A. 9 B. 14 C. 7 D. 12
Why is there a lag between the end of a recession and the peak in the unemployment rate?
A. workers would rather draw unemployment than return to work. B. the first workers recalled are continuing to work part time and when they return to full time employment it does not change the number of people employed. C. reemployment is not recognized until later because of the way data are collected. D. the company has a hard time finding new employees.