1.When prices rose in Mexico faster than in the United States and the nominal exchange rate remained constant, the real exchange rate                       . 2.If a country borrows in dollars, a...

1.When prices rose in Mexico faster than in the United States and the nominal exchange rate remained constant, the real exchange rate
 .

2.If a country borrows in dollars, a depreciation of its own currency against the dollar will
 the burden of its debt.

3.Joseph Stiglitz is the economist who believed that the Asian financial crisis was an example of market overreaction that could have been avoided by bolder actions from world organizations
. (True/False)

4. In the 1990s, Argentina pegged its currency to the dollar. As the dollar appreciated in world markets, this caused an increase in Argentina’s trade
                .