Suppose the current exchange rate between the Mexican peso and the U.S. dollar is 12 pesos = $1
Mexico's GDP in dollars would be greater if the purchasing power parity exchange rate was used to convert pesos to dollars if you could buy the same goods in the United States with ________ as you can in Mexico with ________. A) $1; 12 pesos
B) $10; 150 pesos
C) $100; 900 pesos
D) $1,000; 20,000 pesos
C
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The money market is definitely in equilibrium in which of the following cases?
a) when velocity is constant b) when the quantity of money demanded equals the quantity of money supplied c) when the present value is equal to the interest rate d) when the present value is greater than the interest rate e) when the interest rate is equal to the price of bonds
A Nash equilibrium will always provide both players with their highest payoffs possible
Indicate whether the statement is true or false