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QUESTION 15 One of the major trading partners of Mexico is the USA. In 2009, one US dollar was equal to 13 Mexican pesos whereas

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QUESTION 15 One of the major trading partners of Mexico is the USA. In 2009, one US dollar was equal to 13 Mexican pesos whereas in 2020, one US dollar was equal to 20 Mexican pesos. Therefore, the 2020 exchange rate between US dollars and Mexican pesos implies American consumers are becoming better off buying Mexican products a. Mexican consumers are becoming better off buying American products Ob American manufacturers can make more exports to Mexico None of the above d. d. QUESTION 25 To target the Fed Funds rate in the sholt term the Federal Reserve may use O a. Open Market operations Reserve requirement changes b. Targeting currency exchange rates Unemployment rate Od. QUESTION 26 QUESTION 37 Consider a US Treasury bond with annual nominal yield of 1%. Suppose that the annual expected and realized inflation rate is 1.5%. Therefore the real annual yield of the US Treasury bond is O a. 1% O b. 1.5% OC 2.596 O d. -5%

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