If the Mexican peso (MXN) to Brazilian real (BRL) exchange rate goes from 5.9 MXN/BRL to 7.2 MXN/BRL
A) Brazilians decrease their demand for Mexican goods.
B) Brazilians increase their demand for Mexican goods.
C) Mexicans increase their demand for Brazilian goods.
D) Not enough information to determine what happens.
B
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An expected increase in the future price of automobiles will lead to
A) an outward shift in demand for automobiles today. B) a reduction in the demand for gasoline today. C) a movement down the demand schedule for automobiles. D) no predictable impact on today's demand for automobiles.
Which of the following allows us to compare average levels of real production per person in different nations in a way that adjusts for differences in true costs of living?
A. per capita nominal GDP based on foreign exchange rates B. nominal GDP based on purchasing power parity C. per capita real GDP based on purchasing power parity D. real GDP based on foreign exchange rates