What are net exports? How will an appreciation of the peso affect Mexico's net exports?
What will be an ideal response?
The net exports of a country refer to the value of the exports from the country minus the value of the imports into the country. If the peso appreciates, exports from Mexico will become more expensive causing exports to decrease and imports to increase. Hence, an appreciation of the peso will reduce Mexico's net exports.
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In the 1980s, banks responded to the loss of loans to the commercial paper market by increasing loans to all the following except
A) less creditworthy businesses. B) commercial real estate loans. C) loans to less-developed countries. D) large corporations.
According to Keynes, which of the following should the government do when the economy overheats?
A. Practice laissez faire policies. B. Raise taxes. C. Employ more people. D. Increase spending.