Author Question: A nominal depreciation of the Mexican peso (against all currencies) indicates that A) the peso ... (Read 64 times)

ahriuashd · **on:** Jun 30, 2018

A nominal depreciation of the Mexican peso (against all currencies) indicates that

A) the peso price of foreign currency has fallen.
B) the Mexican real exchange rate will not change if the price level in Mexico falls.
C) the peso price of, for example, the U.K. pound has increased.
D) the number of units of foreign currency that one can obtain with one peso has decreased.

Question 2

With the real wage on the vertical axis and the unemployment rate on the horizontal axis, we know that

A) the WS curve is upward sloping.
B) the WS curve is downward sloping.
C) the PS curve is upward sloping.
D) the PS curve is downward sloping.