Figure 19.1

-Referring to Figure 19.1, Mexican goods will become more expensive in the United States if the exchange rate goes from ________ to ________ pesos to the dollar.

Question

Figure 19.1
 
-Referring to Figure 19.1, Mexican goods will become more expensive in the United States if the exchange rate goes from ________ to ________ pesos to the dollar.

Quizplus · Accepted Answer

When the exchange rate goes from 12 to 11 pesos to the dollar, it means that each dollar now buys fewer pesos. This makes Mexican goods more expensive for Americans, as they need more dollars to purchase the same amount of goods in pesos.

Figure 19.1 -Referring to Figure 19.1, Mexican Goods Will Become More Expensive