Suppose that an increase in a nation's income causes the nation's residents to buy more domestic and foreign goods. Given this, if U.S. residents experience an increase in income, but Mexican residents do not, it is likely that, ceteris paribus,
A) both the U.S. dollar and the Mexican peso will depreciate.
B) both the U.S. dollar and the Mexican peso will appreciate.
C) the U.S. dollar will depreciate and the Mexican peso will appreciate.
D) the U.S. dollar will appreciate and the Mexican peso will depreciate.
C
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If the consumer has a great deal of time to adjust to an increase in the price of gasoline, which of the following is correct?
A) Quantity demanded will be relatively sensitive to the change in price. B) The percentage change in quantity demanded will be quite small relative to the percentage change in price. C) The percentage change in price will be quite large relative to the percentage change in quantity demanded. D) Demand will tend to be unitary elastic as it is for most goods in the long run.
Self-interest relates to
A) only monetary objectives. B) both monetary and nonmonetary objectives. C) the ceteris paribus assumption. D) normative economic analysis and not positive economic analysis.
Buying a cup of coffee with a dollar bill represents the use of money as a:
a. medium of exchange. b. unit of account. c. store of value. d. all of these.
Refer to Figure 2-4. Consider the following events:
a. an increase in the patent protection period to 75 years b. a hurricane that destroys a substantial portion of a nation's capital stock c. the implementation of a secure and enforceable property rights system Which of the events listed above could cause a movement from W to Z? A) a only B) a and b only C) a and c only D) b and c only E) a, b, and c