Answer and Explanation:
The quantity theory of money talks about money supply and price level, and their relationship with one another.
In any given economy, the quantity Theory of money states that money supply and price level are directly proportional. This is to say that when there is a change such as an increase in money supply, there would also be a proportional increase in price Ievel. Also when there is an increase in price level, there would also be a proportional increase in money supply.
Virtually all companies in America now make use of computers in their daily activities. American workforce now need computer technical skills before they can gain employment to work in companies.
Answer:
Wages in US would decrease
Wages in Mexico would increase
Explanation:
The increase in the supply of labour in the US while demand remains unchanged would lead to an excess of supply over demand. This would cause equilibrium wage to fall and quantity to rise.
While in the US, the supply of labour would fall. This would increase wage.
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