If the U.S. inflation rate falls relative to the Mexican inflation rate, which of the following will happen in the market for pesos?
a. A rightward shift of the demand curve, a leftward shift of the supply curve, and an appreciation of the peso
b. A leftward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the peso
c. A leftward shift of the demand curve, a leftward shift of the supply curve, and a depreciation of the peso
d. A rightward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the peso
e. A leftward shift of the demand curve, a rightward shift of the supply curve, and a depreciation of the peso.
E
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What is the most important factor for Federal Reserve currency to be accepted as money?
A) its acceptance by businesses and households in the United States in exchange for goods and services B) its designation as legal tender by the federal government C) the willingness of the federal government to accept it in exchange for an equivalent amount of gold or silver coins D) the willingness of foreign businesses and banks to accept it in exchange for goods and services
What is crowding out?
a. when government borrowing uses up financial capital leaving more for private investors b. when government borrowing leaves more financial capital for private investors c. when government borrowing uses up financial capital leaving less for private investors d. when government borrowing leaves less financial capital and private investors borrow more
The major decline in oil prices in early 1980 that resulted in bankruptcy of many banks and saving and loans in the southwest U.S. resulted in a major Midwestern bank taking bankruptcy because of
A. interstate banking. B. intra bank loans. C. cost of gasoline declined at the pump. D. decrease in the values of oil leases in the Midwest.
Countries in which one would see a spread of ideas, information, images, and people would be categorized under _____ globalization
a. economic b. social c. ethical d. cultural e. political