Ask a Question
  
  
  
Top Posters
Since Sunday
24
24
23
23
23
22
21
21
21
20
20
20
New Topic  
wrote...
Posts: 69
Rep: 8 0
2 weeks ago

Question 1.

All of the following are deficit items in the balance of payments accounts EXCEPT

• U.S. residents purchases of gold from foreign residents.

• exports of merchandise.

• U.S. tourists spending funds in Europe.

• U.S. purchases of foreign companies' stocks and bonds.

Question 2.

Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If the exchange rate changes to $1 equals 8 pesos, which of the following is TRUE?

• The peso appreciates and imports from Mexico become cheaper.

• The peso depreciates and imports from Mexico become cheaper.

• The dollar appreciates and U.S. exports become cheaper.

• The dollar depreciates and U.S. exports become cheaper.
Source  Download
Economics Today: The Micro View
Edition: 19th
Author:
Read 2 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Posts: 64
2 weeks ago
Sign in or Sign up in seconds to unlock everything.

Answer 1

exports of merchandise.

Answer 2

The peso depreciates and imports from Mexico become cheaper.
1
Related Topics
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  131 People Browsing
Related Images
 1518
 1262
 178