Holding all else constant, an increase in the preferences of Americans for Mexican goods will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease
B. decrease; decrease
C. increase; increase
D. decrease; increase
Answer: A
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An increase in price is likely to affect demand in what way?
A. Demand will increase. B. Demand will decrease. C. Demand will not change. D. This would only affect supply and not demand.
Given the exit rule, where does a firm's long-run supply curve derive from? It is the section of the:
A. ATC curve to the right of its minimum. B. MC curve that lies above the ATC curve. C. MC curve that lies above the AVC curve. D. AVC curve to the right of its minimum.
The market system is an economic system that:
a. Gives the government the right to tax individuals and corporations for the production of capital goods b. Produces more capital goods than consumer goods c. Gives private individuals and institutions the right to own resources used in production d. Produces more consumer goods than capital goods
What is the difference between farm commodities and food products? How does the number of competing firms change as farm commodities are processed into food?
What will be an ideal response?