Ask Question
BusinessBusiness
7 February, 05:51

Suppose that over the past decade, US inflation is greater than in Mexico. Assume that the dollar appreciates relative to the Mexican peso. Given this we know thatA. the real exchange rate can decrease or remain the same, but not increaseB. the real exchange rate remains unchangedC. the real exchange rate can increase or remain the same, but not decreaseD. the real exchange rate must increase

+1
Answers (1)
  1. 7 February, 06:05
    0
    Relative to USA, the exchange rate shall decrease because as the currency of USA i. e. dollars appreciates, it makes the imports cheaper for USA and exports expensive for other country.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose that over the past decade, US inflation is greater than in Mexico. Assume that the dollar appreciates relative to the Mexican peso. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Cadmium Technologies Inc. believes that the sole purpose of its existence is to maximize profits for its stockholders. The firm has often been criticized for not engaging in any social investments.
Answers (1)
In economics, when discussing the factors of production, the term land refers to A) farmland. B) real estate. C) capital goods. D) all natural resources.
Answers (2)
Eliza takes her 1-year-old son, danny, to visit an infant-toddler program in which she hopes to enroll him. danny eagerly explores the room as long as eliza is present. when eliza leaves the room to fill out some forms, danny becomes somewhat upset.
Answers (1)
Joe lit a fire in his fireplace and left it unattended. He had failed to check to see if the flue was open, so the smoke entered the house and discolored the walls, ceiling, and drapes. Joe also had to hire a company to remove the smoke odor.
Answers (1)
Widget Corp. wants to shift its list of inventory to a cloud so that its different branches can access it easily. The company needs a cloud computing option that would provide high flexibility to add or drop resources.
Answers (2)
New Questions in Business
Now consider a strangle using the same call with a strike price of $100 and a different put with a strike price of $95. Both have the same expiration date.
Answers (1)
Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its costs of equity is 15 percent, and the cost of debt is 8 Percent. The relevant tax rate is 35 percent.
Answers (1)
That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a (n) a. balance sheet b. trial balance c. chart of accounts d. income statement
Answers (1)
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
Suppose during 2014 that Federal Express reported the following information (in millions) : net sales of $35,497 and net income of $98.
Answers (2)
Home » Business » Suppose that over the past decade, US inflation is greater than in Mexico. Assume that the dollar appreciates relative to the Mexican peso. Given this we know thatA. the real exchange rate can decrease or remain the same, but not increaseB.
Sign Up Forgot Password?