When Mexico Suffered from Capital Flight in 1994,the U

question 165

Multiple Choice

When Mexico suffered from capital flight in 1994,the U.S.real interest rate

• A)rose and the real exchange rate of the dollar appreciated.
• B)rose and the real exchange rate of the dollar depreciated.
• C)fell and the real exchange rate of the dollar appreciated.
• D)fell and the real exchange rate of the dollar depreciated.

---

Definitions:

SUTA Payable

State Unemployment Tax Act payable, a liability account for taxes owed by employers to state unemployment insurance programs.

Social Security Tax

Taxes collected by the government from employees and employers to fund the Social Security program, providing retirement, disability, and survivors' benefits.

Payroll Tax Expense

Levies placed on both employers and employees, determined based on a percentage of the wages that employers distribute to their workforce.

FICA Taxes Payable

Taxes owed for Federal Insurance Contributions Act, primarily for Social Security and Medicare, withheld from employees' paychecks.