Holding all else constant, an increase in Mexican real GDP will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease
B. decrease; increase
C. increase; increase
D. decrease; decrease
Answer: C
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If a multinational is controlling funds, it will expect a subsidiary to remit a ________ portion of their earnings if this subsidiary has the opportunity to reinvest its earnings profitably
A) significant B) substantial C) smaller D) larger
Adding value means
A) to make products that have positive prices. B) that the value of a firms output is greater than the value of the output that was not produced by the inputs the firm employs. C) that the firm has a positive economic profit. D) that economic profit is zero.
If leakages are greater than injections, equilibrium output will be
A. Less than full-employment output, and an inflationary gap will occur. B. More than full-employment output, and an inflationary gap will occur. C. More than full-employment output, and a recessionary gap will occur. D. Less than full-employment output, and a recessionary gap will occur.
Refer to the graph below. All of the following development would allow a movement from point C to a point outside the production possibilities curve, except:
A. An increase in the supply of resource
B. An improvement in the quality of resources
C. A reduction in unemployment of resources
D. A technological advance