Everything else equal, a decrease in the supply of dollars in exchange for pesos:
A) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
B) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
C) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
D) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
Question 2
According to Robert Solow, the production function should be written as
A) Y = F(K, L, A). B) Y = F(K, L). C) Y = F(A, L). D) Y = F(K, A).
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