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Assume that the total value of investment transactions between U.S. and Mexico is minimal. Also assume that total dollar value of trade transactions between these two countries is very large. Now assume that Mexico's inflation has suddenly increased, and Mexican interest rates have suddenly increased. Overall, this would put ____ pressure on the value of Mexican peso. The inflation effect should be ____ pronounced than the interest rate effect.
Annually
Occurring every year or pertaining to a period of one year.
Consumer Credit-Card Rate
The interest rate that banks charge consumers on the balances they carry on their credit cards.
Prime Rate
The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in lending rates.
Economic Resource
Any resource used by humans to produce goods or services, including labor, capital, land, and entrepreneurship.
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