A nominal depreciation of the Mexican peso (against all currencies) indicates that
A) the peso price of foreign currency has fallen.
B) the Mexican real exchange rate will not change if the price level in Mexico falls.
C) the peso price of, for example, the U.K. pound has increased.
D) the number of units of foreign currency that one can obtain with one peso has decreased.
C
You might also like to view...
If the economy were truly made of industries that fit the textbook definition of perfect competition what do you expect would be a major disadvantage of this from the consumer's perspective?
What will be an ideal response?
It is reasonable to expect that if one firm in an oligopolistic market raises price, the its competitors will do the same so that all firms can earn increased revenues
Indicate whether the statement is true or false
The nominal cost per unit of output rises when production is pushed beyond an economy's potential output
a. True b. False Indicate whether the statement is true or false
The unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics as
a. opportunity costs. b. marginal effects. c. secondary effects. d. scarcity constraints.