There Is a Flexible Exchange Rate System and Only Two

question 1

Multiple Choice

There is a flexible exchange rate system and only two countries in the world,the United States and Mexico.If the inflation rate in the United States rises relative to the inflation rate in Mexico,it follows that

• A) the dollar will appreciate and the peso will depreciate.
• B) both the dollar and the peso will appreciate,although the peso will appreciate before the dollar appreciates.
• C) the dollar will depreciate and the peso will appreciate.
• D) both the dollar and the peso will depreciate,although the peso will depreciate before the dollar depreciates.
• E) There is not enough information to answer the question.

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Articles Of Confederation

The first constitution of the United States, in effect from 1781 to 1789, which created a loose confederation of sovereign states and a weak central government.

Confederation Congress

The governing body of the United States under the Articles of Confederation, operating from 1781 to 1789 before being replaced by the U.S. Congress under the Constitution.

Revenue

The income generated from normal business operations or other activities, vital for sustaining businesses and financing governments.