When the Mexican peso gets "stronger" relative to the dollar,
a. the U.S. trade deficit with Mexico rises.
b. the U.S. trade deficit with Mexico falls.
c. the U.S. trade deficit with Mexico is unchanged.
d. None of the above necessarily happens.
b
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Which two of the Ten Principles of Economics imply that the Fed can profoundly affect the economy?
When a country pursues its comparative advantage:
A. World output is minimized. B. Potential gains from trade are minimized. C. Potential gains from trade are maximized. D. Imports and exports are equal.
Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:
A. greater the surplus a price floor will create. B. smaller the shortage a price floor will create. C. greater the shortage a price floor will create. D. smaller the surplus a price floor will create.
The following statements about behavioral economics are true, except:
A. Its insights help policymakers determine how to nudge people to make certain choices B. It combines insights from economics, psychology, and neuroscience to better understand how people behave C. It assumes that people are always rational, deliberate, and objective in their choices D. It studies how people deal with choices involving "goods" as well as "bads"