Suppose that real incomes increase more rapidly in the United States than in Mexico.In the United States, this situation would likely result in a(n)
A) increase in the demand for pesos.
B) decrease in the demand for pesos.
C) increase in the supply of pesos.
D) decrease in the supply of pesos.

Question

Quizplus · Accepted Answer

As real incomes increase in the United States, Americans are likely to demand more foreign goods and services, including those from Mexico, which would increase the demand for pesos to facilitate these transactions.

Suppose That Real Incomes Increase More Rapidly in the United