Author Question: Real and Nominal Exchange RatesIf the nominal exchange rate between the U.S. dollar and the Mexican ... (Read 133 times)

unreallynx · **on:** Nov 23, 2022

Question 1

The Income-Expenditure Model

If an economy's MPC is 0.6 and the MPM is 0.25, then an increase in government spending of $2000 billion will increase income by ________ billion. (Round to the nearest integer.)
◦ $2667
◦ $3077
◦ $5714
◦ $5000

Question 2

Real and Nominal Exchange Rates

If the nominal exchange rate between the U.S. dollar and the Mexican peso is 21.4 pesos per dollar, how many dollars are required to buy a product that costs 62 pesos? (Round to the nearest hundredth.)
◦ $2.90
◦ $0.56
◦ $40.60
◦ $0.35

GoldenBrown · **Reply #1 on:** Nov 23, 2022

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