If Inflation in Mexico Is Lower Than It Is in the United

question 6

Multiple Choice

If inflation in Mexico is lower than it is in the United States

• A)the purchasing power of the peso in buying Mexican goods will fall relative to the dollar.
• B)the value of the dollar will rise in the long run.
• C)the value of the peso will rise in the long run.
• D)the purchasing power of the dollar in buying American goods will rise relative to the peso.