The Following Question Are Based on the Following Graph, Showing

question 63

Multiple Choice

The following question are based on the following graph, showing the market for pesos. Mexico and the United States are engaged in a system of flexible exchange rates.

-If,because of some change in supply or demand,the exchange rate rises from $0.11 to $0.15 to the peso

• A) the peso has been devalued.
• B) the dollar has been devalued.
• C) the dollar has appreciated relative to the peso.
• D) the peso has appreciated relative to the dollar.
• E) both currencies have depreciated relative to each other.

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Definitions:

Eminent Domain

The power of the government to take private property for public use, with compensation to the owner.

Economically Beneficial Uses

Refers to activities or applications that result in economic benefits or gains, such as profit from land or resource utilization.

Equal Protection Clause

A provision of the 14th Amendment to the U.S. Constitution requiring states to treat all individuals within their jurisdictions with equal application of the laws.

Dispute Resolution

A process for resolving disagreements or conflicts between parties through methods such as negotiation, mediation, arbitration, or litigation.