Q. A can of soda costs $0.75 in the United States and 12 pesos in Mexico. What would the' peso- dollar exchange rate be if purchasing-power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose to. 24 pesos, what would happen to the peso-dollar exchange rate
Q. 4 economic participants -- Consumer, Business, Government and Foreign Sector? Could you describe how these participants contribute to the GDP [Gross Domestic Product] and to the economic growth? How can the economy bounce back quickly from the recession? As we begin fleshing out the Wheel of Income and the National Income Accounting 'snapshots,' we need to understand how consumers and businesses behave and why. Explain how do these two relate to each other in the Circular Flow Economy and to the Government and Foreign Sector components? How does all this fit on a Wheel of Income?