If the Mexican peso (MXN) to Brazilian real (BRL) exchange rate goes from 5.9 MXN/BRL to 5.2 MXN/BRL
A) Brazilians decrease their demand for Mexican goods.
B) Brazilians increase their demand for Mexican goods.
C) Mexicans decrease their demand for Brazilian goods.
D) Not enough information to determine what happens.
A
You might also like to view...
If the Fed does not take into account the additional policy channels available in an open economy, then ________ when conducting contractionary monetary policy
A) it is likely to increase GDP too little and cause a recession B) it is likely to decrease GDP too little and inflation will persist C) it is likely to decrease GDP too much and cause a recession D) it is likely to increase GDP too much and inflation will persist
A major force leading the U.S. economy to full employment after the Great Depression was
a. higher interest rates. b. higher reserve requirements. c. government spending for World War II. d. automobile production.