A stereo system in Mexico costs 3,200 Mexican pesos. If the ...

[future617RT]

A stereo system in Mexico costs 3,200 Mexican pesos. If the dollar price of one Mexican pesos is 0.11, then the U.S. dollar value of the same stereo system is 352.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Other things equal, the currency price of U.S. dollars in terms of foreign currency is negatively related to foreign demand for U.S. goods and services.
 a. True
  b. False
  Indicate whether the statement is true or false

[thall411]

Answer to Question 1

True

Answer to Question 2

False