Other things constant, if Americans suddenly increased their desire to vacation in Mexico, the dollar price of the Mexican peso would
a. increase, which is an appreciation of the Mexican peso.
b. increase, which is a depreciation of the Mexican peso.
c. decrease, which is an appreciation of the Mexican peso.
d. decrease, which is a depreciation of the Mexican peso.
A
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An increase in the value of the U.S. dollar relative to the Japanese yen will
a. increase aggregate demand in the United States. b. decrease aggregate supply in the United States. c. increase aggregate demand in Japan. d. increase aggregate supply in Japan.
Suppose government expenditures on goods and services increase, transfers are unchanged, and taxes rise by less than the increase in expenditures. These changes in the government's budget cause
a. both the equilibrium interest rate and the equilibrium quantity of loanable funds to fall. b. both the equilibrium interest rate and the equilibrium quantity of loanable funds to rise. c. the equilibrium interest rate to rise and the equilibrium quantity of loanable funds to fall. d. the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise.