=+10. Traveling in Mexico is much cheaper now than it was ten years ago, says a friend.

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=+10. “Traveling in Mexico is much cheaper now than it was ten years ago,’’ says a friend. “Ten years ago, a dollar bought 10 pesos; this year, a dollar buys 15 pesos.’’ Is your friend right or wrong? Given that total infl ation over this period was 25 percent in the United States and 100 percent in Mexico, has it become more or less expensive to travel in Mexico?

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Macroeconomics

ISBN: 9781429240024

8th Edition

Authors: N Gregory Mankiw

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