Refer to the scenario above. The market for Good A in Eduland is an example of a ________

Is there any risk involved in using fiat money? How can it be minimized?

What will be an ideal response?

Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If the exchange rate changes to $1 equals 8 pesos, which of the following is TRUE?

A) The dollar depreciates and U.S. exports become cheaper. B) The dollar appreciates and U.S. exports become cheaper. C) The peso depreciates and imports from Mexico become cheaper. D) The peso appreciates and imports from Mexico become cheaper.