Author Question: If interest rates in Mexico decrease while the interest rates in the United States remain unchanged ... (Read 144 times)

Zulu123 · **on:** Jun 29, 2018

If interest rates in Mexico decrease while the interest rates in the United States remain unchanged then

A) the supply of Mexican pesos will increase.
B) the supply of Mexican pesos will decrease.
C) the supply of U.S. dollars will increase.
D) None of the above answers is correct.

Question 2

If the price elasticity of demand for clothing is 0.64, this implies that

A) a 6.4 percent increase in price the price of clothing leads to a 10 percent decrease in the quantity demanded.
B) a 10 percent increase in the price of clothing leads to a 6.4 percent decrease in the quantity demanded.
C) if there is an increase in the price of clothing the total expenditures on clothing decreases.
D) Both answers A and C are correct.