In the Early 1990s,the Inflation Rate in Mexico Was Twice

question 37

Multiple Choice

In the early 1990s,the inflation rate in Mexico was twice the rate in the United States,but the Mexican monetary authorities kept the peso / dollar exchange rate almost constant.For Mexican consumers

• A) incomes rose dramatically.
• B) interest rates fell to compensate for increased inflation.
• C) Mexican products became less expensive while U.S.-made products became comparatively more expensive.
• D) Mexican products became more expensive while U.S.-made products became comparatively less expensive.
• E) all of these

---

Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, culminating in net profit or loss.

Other Income

Any revenue other than revenue from sales. It appears in a separate section on the income statement. Examples: Rental Income and Storage Fees.

Merchandise Inventory

Items purchased for resale to customers in the ordinary course of business, representing a current asset on the balance sheet.

Sales Discount

Amount a customer is allowed to deduct from the bill total for paying a bill during the discount period.