Figure 18.2
-Referring to Figure 18.2, Mexican goods will become cheaper in the United States if the exchange rate goes from ________ to ________ pesos to the dollar.

Question

Quizplus · Accepted Answer

When the exchange rate increases from 12 to 13 pesos to the dollar, it means that each dollar can buy more pesos. This makes Mexican goods cheaper in the United States because you need fewer dollars to buy the same amount of goods when you convert your money to pesos.

Figure 18.2 -Referring to Figure 18.2, Mexican Goods Will Become Cheaper in Cheaper