Imagine a $2,000 investment that raises the economy's capital stock from $20,000 to $22,000 . It changes the capital-labor ratio from $200 to $220 . Economists refer to such increases in the capital-labor ratio as

As the price of a good increases, the marginal utility per dollar spent on that good will also increase

a. True b. False Indicate whether the statement is true or false

Assume a U.S. investor buys a Mexican bond with a face value of MXP 1,000 and a 20 percent annual interest yield while the exchange rate is MXP 10 per dollar. What is the dollar return from the bond if the exchange rate at the end of the year is MXP 11 per dollar?

a. 9.1% b. 10.0% c. 18.2% d. 20.0% e. 32.0%