Author Question: Mexico pegged its exchange rate to the U.S. dollar in the 1980s A) to maintain a similar ... (Read 114 times)

schs14 · **on:** Jun 29, 2018

Mexico pegged its exchange rate to the U.S. dollar in the 1980s

A) to maintain a similar unemployment rate to the United States
B) in an attempt to abandon the peso and switch to U.S. dollars as currency.
C) to signal investors that Mexico was serious about controlling inflation.
D) to discourage foreign investment.

Question 2

When the price level increases, aggregate planned expenditure ________ and equilibrium real GDP ________. As a result, in the AS-AD model, the aggregate demand curve has a ________ slope.

A) increases; decreases; negative
B) decreases; decreases; negative
C) decreases; increases; negative
D) increases; increases; positive
E) decreases; decreases; positive