This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Everything else equal, how will a decrease in the interest rate in Mexico affect Mexico's GDP? ... (Read 47 times)

armygirl

  • Hero Member
  • *****
  • Posts: 556
on: Jun 30, 2018
Everything else equal, how will a decrease in the interest rate in Mexico affect Mexico's GDP?
 
  What will be an ideal response?

Question 2

A firm's inventory piled up during a recession. How will its labor demand be affected when its excess inventory gets sold off eventually?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Awesome

  • Sr. Member
  • ****
  • Posts: 280
Reply #1 on: Jun 30, 2018
Answer to Question 1

A decrease in the interest rate in Mexico will cause a decrease in the willingness to invest in Mexico. This will cause a fall in the demand for pesos and cause it to depreciate. A depreciation of the peso will encourage exports and discourage imports causing net exports from Mexico to rise. This will cause an increase in the GDP of Mexico.

Answer to Question 2

The firm will increase its production after its excess inventory gets sold off after the recession. An increase in production will lead to an increase in its demand for labor. As a result, the firm's labor demand curve will shift to the right.


armygirl

  • Member
  • Posts: 556
Reply 2 on: Jun 30, 2018
:D TYSM

tuate

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Changes in the abundance and egg-hatching success rate of prairie chickens. Changes in the abundance and egg-hatching success rate of prairie chickens.
The flukes of a sperm whale as it dives into the Gulf of Mexico The flukes of a sperm whale as it dives into the Gulf of Mexico
Spring force, crankcase pressure, and intake manifold vacuum work together to regulate the flow rate ... Spring force, crankcase pressure, and intake manifold vacuum work together to regulate the flow rate ...
Fluidization - Reaction Rate Chart Fluidization - Reaction Rate Chart
Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ... Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ...
The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho
Video: How do the different types of chromatography work? (No Audio)

For a complete list of videos, visit our video library