Kept the peso-dollar exchange rate almost constant

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Reference no: EM131234608

1. If 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, which of the following would be true?

A. The high inflation rate in Mexico would increase its citizens' purchasing power.

B. Mexican products would be less expensive, while U.S.-made products would become comparatively more expensive.

C. The high inflation rate in Mexico would mean that its products would cost less overall.

D. Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive.

2. In New England, foot-long sandwiches are called "grinders." In many other parts of the country, they're called "subs." This is an example of the impact of

A. regional culture.

B. country culture.

C. generational factors.

D. regulatory factors.

Reference no: EM131234608

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