If a bushel of wheat costs $6.40 in the United States, costs 40 pesos in Mexico, and the nominal exchange rate is 10 pesos per dollar, then the real exchange rate is

The long-run average total cost curve is less u-shaped than the short-run average total cost curve

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

If the Fed raises the discount rate, what happens to reserves and the money supply?

a. Reserves increase and the money supply decreases. b. Both increase. c. Reserves decrease and the money supply increases. d. Both decrease.