From the nineteenth century until the 1930s, the United states most consistently adhered to

Suppose the current exchange rate between the U.S. dollar and the Mexican peso is $0.12 = 1 peso. Furthermore, suppose the price level in the United States rises 25 percent at a time when the Mexican price level is stable. According to the purchasing power parity theory, what will be the new equilibrium exchange rate?

A) $0.15 = 1 peso B) $0.09 = 1 peso C) $0.13 = 1 peso D) $0.08 = 1 peso

The law of supply states that, other things constant, there is:

A. an inverse relation between price and the quantity supplied. B. an inverse relation between price and supply. C. a direct relation between price and supply. D. a direct relation between price and the quantity supplied.