Going from a closed to an open economy ________ macroeconomic policymaking, especially now that exchange rates are ________

If interest rates in Mexico decrease while the interest rates in the United States remain unchanged then

A) the supply of Mexican pesos will increase. B) the supply of Mexican pesos will decrease. C) the supply of U.S. dollars will increase. D) None of the above answers is correct.

Suppose exports are greater than imports. Given this information, we know with certainty that

A) a trade surplus exists. B) GNP > GDP. C) GNP < GDP. D) the change in business inventories is positive.