Referring to Figure 18.2, Mexican goods will become cheaper in the United States if the exchange rate goes from ________ to ________ pesos to the dollar.

A. 12; 11
B. 12; 13
C. 13; 11
D. 13; 10


Answer: B

Economics

You might also like to view...

Refer to the scenario above. What is the present value of the benefits of buying the extended warranty?

A) $33.04 B) $39.82 C) $52.10 D) $60

Economics

In common value auctions

a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. Bidders do not know the estimates of the others d. The true value of the item differs across bidders

Economics

If initially an individuals' compensation is less than their productivity but the reverse is true, the individual

A) will free-ride late in their career. B) has an incentive to leave the firm. C) has an incentive to stay with the firm. D) none of these choices.

Economics

Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?

a. The real risk-free interest rate falls, and real GDP rises. b. The real risk-free interest rate and real GDP remain the same. c. The real risk-free interest rate rises, and real GDP falls. d. The real risk-free interest rate falls, and real GDP remains the same. e. The real risk-free interest rate falls, and real GDP falls.

Economics