Assume That, Under a System of Floating Exchange Rates, Mexicans

question 234

Multiple Choice

Assume that, under a system of floating exchange rates, Mexicans decide to increase their investments in the United States. As a result,

• A)the peso and the dollar will both depreciate.
• B)the peso and the dollar will both appreciate.
• C)the peso will depreciate and the dollar will appreciate.
• D)the peso will appreciate and the dollar will depreciate.

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