Everything else equal, an increase in the demand for dollars in exchange for pesos:
A) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
B) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
C) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
D) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
Question 2
A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has
A) decreased the marginal benefit of cheating.
B) recognized that students don't make rational choices.
C) increased the marginal cost of cheating.
D) made all the students act in the social interest.
E) recognized that students don't respond to incentives.
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