A fixed exchange rate, say, Mexican pesos per dollar, is determined by
a. U.S. consumers that buy Mexican exports
b. the U.S. government
c. U.S. businesses that export to Mexico
d. the foreign exchange market
e. the levels at which other exchange rates float
B
Economics
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Which of the following describes a reason U.S. consumers might especially value trade with China?
a. China is a large market with potential to buy many U.S. exports. b. China supplies many goods imported to the United States. c. China and the United States have similar cultural practices. d. China was closed off from U.S. trade for several decades.
Economics
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Economics