Currencies depreciate and appreciate all the time. Who gains and who loses when the Mexican peso depreciates?
a. Americans holding Mexican pesos gain, U.S. tourists to Mexico lose
b. U.S. exporters to Mexico gain, Americans holding pesos lose
c. Mexican tourists gain, U.S. tourists in Mexico lose
d. Mexican importers gain, Mexican exporters lose
e. Mexican exporters gain, Mexican importers lose
E
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The principle that the cost of something is equal to what is sacrificed to get it is known as the
A) reality principle. B) marginal principle. C) principle of opportunity cost. D) principle of diminishing returns.
From the late 1940s until the creation of the WTO, the organization that was primarily responsible for conducting rounds of trade negotiations was the
A) World Bank. B) IMF. C) ITO. D) United Nations. E) GATT.
Keynes's liquidity preference theory indicates that the demand for money
A) is purely a function of income, and interest rates have no effect on the demand for money. B) is purely a function of interest rates, and income has no effect on the demand for money. C) is a function of both income and interest rates. D) is a function of both government spending and income.
When the current price is above the market-clearing level we would expect:
A) quantity demanded to exceed quantity supplied. B) quantity supplied to exceed quantity demanded. C) a shortage. D) greater production to occur during the next period.