Suppose the U.S. price level rose at the same time the Mexican price level remained constant. Which of the following would occur?
a. The demand for pesos would increase.
b. The supply of pesos would decrease.
c. The supply of pesos would increase.
d. The demand for pesos would decrease.
e. The supply of pesos would stay constant.
A
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What is the basic criticism that economic theory levels against the movement to base wages on the "comparable worth" of jobs?
A) Markets, not employers, set wage rates for different jobs. B) There are no jobs that are inherently more suitable for women than for men. C) There is no way to compare the satisfactions that different people derive from a job. D) Wage rates determine the worth of workers to an employer by determining the number that will be hired. E) Wage rates will be set by supply and demand and cannot be changed by anything government does.
Suppose checking deposits increase by $6,000 after all rounds of the money-creation process when the Fed buys $1,200 worth of U.S. government securities. This implies that the maximum value of the required reserve ratio is: a. 5
b. 0.75. c. 0.2. d. 1.2. e. 1.0.
Fixing exchange rates reduces
a. the demand for currency b. the quantity demanded of currency c. the supply of currency d. the quantity supplied of currency e. uncertainty associated with international trade
Which of the following is NOT given in the video as an example of a real shock?
A. high inflation B. bad weather C. wars D. changes in the price of oil