An increase in U.S. imports from Mexico _______ the supply of dollars and _______ the demand for pesos.

Name: An increase in U.S. imports from Mexico _______ the supply of dollars and _______ the demand for pesos.
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When the U.S. imports more from Mexico, Americans need more pesos to pay for these imports, increasing the demand for pesos. To obtain pesos, they supply more dollars in the foreign exchange market, increasing the supply of dollars.

An Increase in U