Imagine That There Are Only Two Nations in the World,the

question 100

Multiple Choice

Imagine that there are only two nations in the world,the United States and Mexico.If Americans buy more goods made in Mexico,other things constant,the:

• A)U.S.demand curve for Mexican pesos will shift rightward.
• B)U.S.demand curve for Mexican pesos will shift leftward.
• C)U.S.supply curve of Mexican pesos will shift leftward.
• D)U.S.supply curve of Mexican pesos will shift rightward.
• E)U.S.supply curve of Mexican pesos will become perfectly inelastic.

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Definitions:

Guns

Firearms designed to discharge projectiles at high speeds, utilized for a variety of purposes including defense, hunting, and sporting activities.

Butter

A dairy product made by churning cream or milk, used as a spread or in cooking.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefits to an economy or society.

Technology

The application of scientific knowledge for practical purposes, especially in industry, which includes machinery, equipment, methods, and techniques.