Mexico will be forced to sell official dollar reserves to maintain price stability Mexico will be forced to accept policies leading to lower unemployment and higher prices The Canadian dollar will appreciate relative to the Mexican peso Other things equal, if the Canadian central bank raises Canadian interest rates relative to Mexican rates: Suppose that Canada and Mexico allow their currencies to float. Shift the supply curve to the left, causing the peso to appreciate Shift the supply curve to the right, causing the dollar to appreciate Shift the demand curve to the right, causing the dollar to depreciate Shift the demand curve to the left, causing the dollar to depreciate Use the following diagram to answer the next question: balance of payments as a:Ĭredit in the capital and financial account If Nokia (a Finnish telephone manufacturer) purchases a production facility in the U.S., this will be recorded in the U.S. balance on current account is a:Ĭonsider the following hypothetical exchange rates: $1 =. Answer the next question on the basis of this information. balance of payments in a particular year. The following table contains hypothetical data for the U.S.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |