Suppose the governments of Mexico and the United States agree to a fixed exchange rate.Describe some of the options available to the Mexican government if the peso was persistently overvalued,creating a surplus of pesos on the foreign exchange market.Be sure to explain how each of these options would be expected to impact the supply and/or demand for Mexican pesos.

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The Answer of Suppose the governments of Mexico and the United States agree to a fixed exchange rate.Describe some of the options available to the Mexican government if the peso was persistently overvalued,creating a surplus of pesos on the foreign exchange market.Be sure to explain how each of these options would be expected to impact the supply and/or demand for Mexican pesos.

Suppose the Governments of Mexico and the United States Agree