Exhibit 20-7 -Imagine There Are Only Two Countries in the World, Mexico

question 143

Multiple Choice

Exhibit 20-7
-Imagine there are only two countries in the world, Mexico and Canada, and two currencies, pesos and Canadian dollars. If Mexico's central bank wants to protect its currency from depreciating in response to the demand shift shown in Exhibit 20-7, which of the following is most likely to be the policy it will choose?

• A) increasing the supply of pesos
• B) decreasing the supply of Canadian dollars
• C) purchasing Canadian dollars with newly issued pesos
• D) purchasing pesos with reserves of Canadian dollars
• E) selling pesos to Canadians

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Tympanic Thermometer

A device used to measure body temperature by detecting the heat emitted from the tympanic membrane or ear drum.

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The organ located in the head of an animal, which controls most of the organism's activities and processes information received from the senses.

Combining Form

In linguistics, a form of a word that combines with another word or form to create a new word or expression.