If the inflation rate in Mexico was twice the rate in the United States, but the Mexican
monetary authorities kept the peso-dollar exchange rate almost constant, which of the
following would be true?
A. The high inflation rate in Mexico would increase its citizens' purchasing power.
B. The high inflation rate in Mexico would mean that its products would cost less
C. Mexican products would be less expensive, while U.S.-made products would
become comparatively more expensive.
D. Mexican products would be more expensive, while U.S.-made products would
become comparatively less expensive.
E. U.S.-made products would become less attractive to purchase.
Although firms such as restaurants have difficulty controlling service quality from day
to day, they do have control over
A. how they communicate the services they promise.
B. the price of ingredients.
C. the attitudes of customers.
D. the way customers view them compared to competitors.
E. the knowledge gap consumers create.