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The Figure Given Below Depicts the Foreign Exchange Market for British

question 47

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The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2    -Suppose a hefty rise in the demand for Mexican pesos creates a chronic shortage of this currency in the foreign exchange market. Which of the following steps should be adopted by the Mexican government to eliminate this shortage? A) The government should impose a ban on Mexican exports. B) The government should devalue the peso. C) The government should print more pesos to increase its supply. D) The government should allow the peso to appreciate. E) The government should allow the peso to depreciate.
-Suppose a hefty rise in the demand for Mexican pesos creates a chronic shortage of this currency in the foreign exchange market. Which of the following steps should be adopted by the Mexican government to eliminate this shortage?

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