The exchange rate for the Mexican peso changes from $1 = 5 pesos to $1 = 6 pesos. This change will lead to:
A. U.S. goods becoming less expensive for Mexicans
B. Mexican goods becoming more expensive for Americans
C. An increase in U.S. exports to Mexico
D. A decrease in U.S. exports to Mexico
D. A decrease in U.S. exports to Mexico
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In 2014, tire industry lobbyists pressured the United States government to consider imposing an additional tariff of up to 86% on top of the current 4% tariff on imported Chinese-made tires
This type of behavior where industry lobbyists attempt to influence law for their own economic advantage is called A) deadweight protection. B) blackmail. C) quota manipulation. D) rent seeking.
The substitution effect of a decrease in the wage rate would lead most people to supply
A. less labor and demand less leisure. B. less labor and demand more leisure. C. more labor and demand less leisure. D. more labor and demand more leisure.
A short-run aggregate supply curve (SRAS) assumes: a. the CPI is fixed
b. each point on the SRAS is potential real GDP. c. fixed or sticky nominal wages. d. nominal wages vary directly with price changes.
According to the "animal spirits" described by Keynes, when optimism reigns, households and firms
a. increase spending which results in inflationary pressures. b. decrease spending which results in deflationary pressures. c. increase spending which results in deflationary pressures. d. decrease spending which results in inflationary pressures.