John Amaker owns orange groves and hires pickers for a two-week period as shown in Table 7-3.Table 7-3
Pickers
Oranges Picked
1
1,000
2
2,000
3
3,000
4
3,900
5
4,700
6
5,400
7
6,000
8
6,200
9
6,000
In Table 7-3, the marginal physical product of the fifth picker is

If the inflation rate in the United States is higher than that in Mexico and productivity is growing at a slower rate in the United States than in Mexico, then, in the long run, ________, everything else held constant

A) the Mexican peso will appreciate relative to the U.S. dollar B) the Mexican peso will depreciate relative to the U.S. dollar C) the Mexican peso will either appreciate, depreciate, or remain constant relative to the U.S. dollar D) there will be no effect on the Mexican peso relative to the U.S. dollar

Which of the following will always cause an increase in net exports?

A) a reduction in domestic output B) an increase in the real exchange rate C) an increase in government spending D) an increase in investment E) all of the above