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Imagine That There Are Only Two Nations in the World

Question 83

Multiple Choice

Imagine that there are only two nations in the world, the United States and Mexico.If Mexico experiences a drop in the price of foreign exchange, people in Mexico will


A) have to buy more U.S.currency, because prices of imports from the United States will have increased
B) end up buying less U.S.currency, because U.S.prices on goods will decrease to everyone
C) be able to afford less U.S.currency, and imports from the United States will be more expensive
D) be able to afford more U.S.currency, and imports from the United States will be cheaper
E) be able to afford more U.S.currency, and imports from the United States will be more expensive

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