Everything else equal, how will a decrease in the interest rate in Mexico affect Mexico's GDP?
What will be an ideal response?
A decrease in the interest rate in Mexico will cause a decrease in the willingness to invest in Mexico. This will cause a fall in the demand for pesos and cause it to depreciate. A depreciation of the peso will encourage exports and discourage imports causing net exports from Mexico to rise. This will cause an increase in the GDP of Mexico.
Economics
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Refer to the figure above. If the pre-tax equilibrium price of Good X was $3 and the price that consumers need to pay after the imposition of a per-unit tax of $3 is $5, the tax incidence on consumers is approximately ________
A) 50% B) 2% C) 3% D) 67%
Economics
In what industrial sector are children most likely to be working?
What will be an ideal response?
Economics