International Econ. Review Sheet Answers

1.
A.  Mexico
B. Mexico
C. Mexico
D. USA
E. Nations should specialize in the good for which they have the lowest OC and trade for the other good.  This in turn leads to greater total production of both goods, raising standard of living.




2. 
A.  Hurt
B.  Helped
C.  Hurt






3.
A.  Current/+
B.  Financial/+
C. Current/-






4. 
A. Increase S USD
B.  Increase D MP
C.  Lower interest rates resulting from Janet's EMP decrease investor interest in US banks.  Those holding Dollars supply them to the currency market in exchange for Pesos.
D.  Mexico/imports, USA/exports
E.  Increase AD
F.  Increase PL








Back currency questions


1.  CD
2.  YEN
3.  SD
4.  ZD
5. CD
6.  EU
7. SD
8.  AA
9.  EE
10.  USA