Posted by **David** on Wednesday, March 24, 2010 at 10:28pm.

3. Consumer spending on durables falls, draw a graph to analyze the effects of this change in real interset.

4. The Canadian demand for Mexican Pesos is downward sloping and supply of pesos is upward sloping. Assume a system of flexible exchange rate between Mexico and Canada, graphically illustrate and explain how each of the following would affect market value of Mexican Pesos.

a) Mexico encounters severe recession

b) the Mexico government encourages foreign investment in Mexico by tax policies.

5. What effects would each of the following have on equilibrium output and price?

a) an increase of the aggregate supply and a decrease in aggregate demand.

b) an equal increase in both aggregate supply and aggregate demand

- economic -
**Anonymous**, Thursday, March 25, 2010 at 4:02pm
i have these same questions as you, have you made any progress? i'm still trying to figure out these questions right now, but will post if I find anything.

- economic -
**Nicole**, Thursday, March 25, 2010 at 4:22pm
Hi it's me again (Nicole).

I think I have #3.

Reduced spending means a decrease in demand. Due to this decrease in demand the real interest rate will fall. This keeps prices lower. The graph is pretty standard.

- economic -
**George**, Thursday, March 25, 2010 at 11:43pm
hey i have the same questions too. did any of u get number 4 or 5

## Answer This Question

## Related Questions

- economics - 3. Consumer spending on durables falls, draw a graph to analyze the ...
- Math-ish - Ag Bm 101 question: Graphing and Prices? The U.S demand for tomato ...
- spanish - what does this mean...recibe pesos mexicanos... Thank you for using ...
- econ 181 - 1. The three reasons for the downward slope of the aggregated demand ...
- pesos - How many dollars did he receive if he exchanged 42.7 pesos at a rate of...
- Algebra - Nick budgets from 300 pesos to 900 pesos for trees and/or bushes to ...
- math - 10 pesos = .909198 US dollars. Use estimation and rounding to find out ...
- Economics - I am working on the cost of taxation. Question: The market for pizza...
- U.S. and Global economics; involving math problems - I've been working on this ...
- Managerial Economics - I am trying to understand how to variate between MC and ...

More Related Questions