Multiple Choice
The trade deficit in Mexico did not cause a problem prior to 1994 because:
A) oil prices were high and Mexico was a net exporter of oil.
B) Mexicans abroad remitted huge sums of foreign currencies back to Mexico.
C) foreign investors willingly traded their foreign currencies for Mexican pesos to buy Mexican securities.
D) the Mexican peso was pegged to the U.S. dollar.
Correct Answer:
Verified
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