Author Question: Suppose that the exchange rate between Mexican pesos and dollars is 8 pesos per dollar. If the ... (Read 75 times)

burchfield96 · **on:** Jun 30, 2018

Suppose that the exchange rate between Mexican pesos and dollars is 8 pesos per dollar. If the exchange rate goes to 6 pesos per dollar, it would tend to:
a. decrease U.S. exports to Mexico.
b. increase U.S. exports to Mexico.
c. increase Mexican exports to the United States.
d. both (a) and (c)

Question 2

Unexpected inflation harms both debtors and individuals who live on fixed incomes.
a. True
b. False
Indicate whether the statement is true or false