In late 1994 and early 1995, the Mexican peso fell by more than 40 percent. In an effort to strengthen the peso, then Mexican President Zedillo concentrated on the effects inflation had on the value of the peso. His plan most likely included:
A. decreasing domestic taxes.
B. increasing the money supply.
C. increasing domestic taxes.
D. increasing government spending.
Answer: C
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When equilibrium GDP is greater than potential GDP, jobs are plentiful and labor is in great demand
a. True b. False Indicate whether the statement is true or false
Figure 19-1
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Of the graphs in Figure 19-1, which one shows the effects of an economic boom in the United States and a depreciation of the dollar?
A. 1 B. 2 C. 3 D. 4
The price of a good always changes when
A) either a shortage or a surplus occurs. B) quantity demanded and quantity supplied are constant. C) there is an increase in demand and an increase in supply. D) there is a decrease in demand and a decrease in supply.
Increased domestic imports and higher international trade deficits are possible results of government surpluses
a. True b. False Indicate whether the statement is true or false