Unformatted text preview: tion. Winners [anyone buying with dollars] 1. American tourists to Mexico
2. People who send dollars to family or friends in Mexico
3. U.S. businesses that buy from Mexico
4. American consumers who buy Mexican imports
5. Those who primarily do business in dollars Losers [anyone buying with pesos]
1. Mexicans who buy American products
2. Mexican businesses that buy supplies from the U.S.
3. American businesses that sell products to Mexico
4. Mexican visitors to the U.S.
5. Those who primarily do business in pesos $1 = P3.5 $20,000 car = 70,000 pesos $1 = P11.0 $20,000 car = 220,000 pesos Year Dollar Yen Franc Mark 1 $1 320 4.0 1.8 2 $1 350 5.8 2.3 1. Given the change in the value of the dollar between year 1 and year 2, as indicated above, describe the effects this will have on U.S. tourism overseas. 2002 AP Es s ay o n Hig he r Inte re s t Rate s in the U.S . in 2002 Essay [Real IR=Nominal IR-Inflation] $ Price of Y The real interest rates in the U.S. and Japan are equal to 7% [say 9%-2%=7%].
The real intere...
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