A nominal depreciation of the Mexican peso (against all currencies) indicates that
A) the peso price of foreign currency has fallen.
B) the Mexican real exchange rate will not change if the price level in Mexico falls.
C) the peso price of, for example, the U.K. pound has increased.
D) the number of units of foreign currency that one can obtain with one peso has decreased.
C
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In the______________, workers cannot work efficiently because there are too many resources per worker.
Fill in the blank(s) with the appropriate word(s).
Moral hazard is:
A. when one party acts in a way that is ethically outside the norm in a market exchange. B. when individuals make exchanges in the grey market. C. the tendency for people to behave in a riskier way when they're insured. D. when both parties act in a way that is ethically outside the norm in a market exchange.