Holding All Else Constant, a Decrease in the Real Interest

question 6

Multiple Choice

Holding all else constant, a decrease in the real interest rate on Mexican assets will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.

• A)increase; increase
• B)increase; decrease
• C)decrease; decrease
• D)decrease; increase

---

Definitions:

Endogamous

A social practice where marriage is restricted to within a particular social group, class, or ethnic group, discouraging external unions.

Societies

Groups of individuals living together, organized under a set of shared norms and practices that define their collective behavior.

Incest Taboo

Incest taboo is a widespread social and cultural prohibition against sexual relationships or marriage between individuals considered to be closely related by blood or kinship.