Suppose there is a decrease in U.S. income and Mexican income does not change. We would expect to see
A) both the dollar and the peso depreciate.
B) both the dollar and the peso appreciate.
C) the dollar depreciate and the peso appreciate.
D) the dollar appreciate and the peso depreciate.
D
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A bank is "loaned up" when
A) legal reserves are zero. B) excess reserves are zero. C) primary reserves are zero. D) required reserves are zero.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
The arrangements that individuals have with each other to exchange goods is known as
A. complements. B. a market. C. supply. D. demand.
Profit-maximizing businesses will buy more new machinery only if:
A. The interest rate increases B. Labor costs are low and expected to fall C. The expected rate of return of the new machinery is greater than the interest rate D. The present value of the new machinery is lower than its purchase price