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Author Question: If the exchange rate between the United States and Mexico changes from $1 = 8 pesos to $1 = 9 pesos, ... (Read 164 times)

Alygatorr01285

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Question 1

Refer to the information provided in Table 33.6 below to answer the question(s) that follow.











Refer to Table 33.6. Trade will flow in both directions between countries only if the price of the euro is between


◦ $1.00 and $2.25.
◦ $.44 and $1.00.
◦ $.40 and $.50.
◦ $.60 and $.75.

Question 2

If the exchange rate between the United States and Mexico changes from $1 = 8 pesos to $1 = 9 pesos, then, 
ceteris paribus, the price of American goods in Mexico


◦ will remain the same.
◦ will increase.
◦ could either increase or decrease.
◦ will decrease.


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Marked as best answer by Alygatorr01285 on Apr 19, 2019

morrie123456

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