Which of the Following Would Most Likely Cause the Spot

question 14

Multiple Choice

Which of the following would most likely cause the spot market value of the dollar to appreciate relative to the Mexican peso?

• A) an increase in Mexican interest rates
• B) the expectation that the dollar will depreciate versus the peso in the coming months
• C) weakening in the US stock market
• D) increasing popularity of Mexican goods in the US
• E) the expectation of persistently high Mexican inflation relative to US inflation

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Definitions:

Needs-Based Reasoning

Reasoning about other people’s needs in which one must weigh one’s own personal needs against those of others.

Tolerance

The willingness to accept and permit beliefs or practices that one may disagree with or find undesirable.

Constantly Comparing

The habitual act of comparing oneself to others in various aspects of life.

Motivate

To provide a reason, incentive, or encouragement for someone to act or behave in a particular way.