question archive 1) An increase in interest rates in Mexico will a
1) An increase in interest rates in Mexico will a
Subject:EconomicsPrice: Bought3
1) An increase in interest rates in Mexico will a. Decrease both the demand and supply of Mexico pesos b. Increase the demand and decrease the supply of Mexican pesos c. Decrease the demand and increase the supply of Mexican pesos (Es/peso) 2) Which of the following will decrease the U.S. Dollar-Mexican peso exchange rate? An increase in populatiry of U.S. products in Mexico b. Increased U.S. toruism in Mexico C. None of the above a. 3) Assume that bad weather in the U.S. destory much of the U.S. vegetable production and U.S. imports of Mexican vegetables increase as a result. This will a. Increase the demand for pesos b. Decrease the demand for pesos C. Increase the supply of pesos 4) if triangular arbitrage holds and a British pound cost $2 and a euro cost $3, the British pound will cost (E euros/pounds) a. .67 Euros b. 6 Euros c. None of the above 5) Which of the following theories is unlikely to hold in the short-run because of the presence of non-traded goods? a. Absolute purchasing power parity b. Triangular arbitrage c. Quantity theory of money 6) According to quantity theory of money, an increase in money demand (L) will a. Increase GDP b. Decrease GDP C. Decrease the price level 7) Relative purchasing power parity assumes that a. The nominal exchange rate is constant over time b. The real exchange rate is equal to one c. The real exchange rate is constant over time
