Laissez-faire is an economic: Multiple Choice precept because it is the logical conclusion of a model with widely held assumptions. theorem because it is the logical conclusion of a model with carefully stated relationships among variables. precept because it is based on a model and normative judgments about the relevance of the model to the real world. theorem because it is based on deductive analysis of a model that is based on assumptions.

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.