A large increase in the income level in the U. S. along with no growth in Mexico’s income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) in U. S. demand for Mexico’s goods, and the Mexican peso should .

a. increase; depreciate
b. increase; appreciate
c. decrease; appreciate
d. decrease; depreciate

(B) increase; appreciate.

Explanation:

A large increase in the income level in the U.S. along with no growth in Mexico’s income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) INCREASE in U.S. demand for Mexico’s goods, and the Mexican peso should APPRECIATE.

Because the large increase in the income level in the U.S will result to an increase in U.S demand. And consequently, the Mexican peso would appreciate. Appreciation, in general terms, is an increase in the value of an asset over time and one of reasons this increase can occur is increased demand.

explanation:

dont report me i need points

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi