A Large Increase in the Income Level in Mexico Along

question 24

Multiple Choice

A large increase in the income level in Mexico along with no growth in the U.S. income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) ____ in Mexican demand for U.S. goods, and the Mexican peso should ____.​

• A) ​increase; appreciate
• B) ​increase; depreciate
• C) ​decrease; depreciate
• D) ​decrease; appreciate

---

Definitions:

Lacteals

Specialized lymphatic capillaries located in the villi of the small intestine, which absorb dietary fats and transport them to the circulatory system.

Lipids

A group of naturally occurring molecules including fats, waxes, and vitamins, essential for energy storage and cell structure.

Digestive Tract

The series of organs in the digestive system through which food passes, nutrients are absorbed, and waste is eliminated; starting from the mouth and ending at the anus.

Fluid Balance

The maintenance of the correct volume and concentration of body fluids via mechanisms that regulate fluid intake and excretion.