Holding All Else Constant, an Increase in Preferences by Mexicans

question 36

Multiple Choice

Holding all else constant, an increase in preferences by Mexicans for U.S. goods will ________ the demand for 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

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Definitions:

Oliver Cromwell

A key figure in English history, leading forces against the monarchy during the English Civil War and later serving as Lord Protector of the Commonwealth of England, Scotland, and Ireland.

Moral Liberty

The freedom to act in accordance with one's moral principles and beliefs, often considered a key aspect of individual autonomy and ethical life.

Natural Liberty

A philosophical concept referring to the freedom from artificial constraints and the ability to act according to one's own will and reason in the pursuit of happiness and well-being.