The domestic currency of a country depreciates in value when:
a. there is an increase in the foreign currency price of the domestic currency.
b. its value falls in relation to another currency
c. the government of the country revaluates the domestic currency.
d. its value rises in relation to another currency.
e. there is a fall in the domestic demand for foreign currency.
b
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The marginal propensity to import is larger in Mexico than in the United States. As a result,
A) there is less autonomous investment in Mexico. B) the expenditure multiplier is larger in Mexico. C) the expenditure multiplier is larger in the United States. D) induced expenditure is larger in Mexico. E) there is more autonomous expenditure in Mexico.
If Ewan is consuming his utility maximizing bundle and the price of one good falls, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Ewan do?
A) MU/P has increased and Ewan should buy more of this good. B) MU/P has decreased and Ewan should buy more of this good. C) MU/P has increased and Ewan should buy less of this good. D) MU/P has decreased and Ewan should buy less of this good.