Figure 19.1

-Referring to Figure 19.1, Mexican goods will become cheaper 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 cheaper 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 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 dollars to more pesos.

Figure 19.1 -Referring to Figure 19.1, Mexican Goods Will Become Cheaper in Will