According to the purchasing power parity theory,if the inflation rate in Mexico is greater than the inflation rate in Switzerland,the nominal exchange value of the peso will appreciate against the franc.

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According to the purchasing power parity theory, if the inflation rate in Mexico is higher than in Switzerland, the peso will depreciate against the franc. This is because the higher inflation rate in Mexico means that it will have a lower purchasing power compared to Switzerland, resulting in a decrease in demand for the peso and a decrease in its value relative to the franc. Therefore, the nominal exchange value of the peso will depreciate against the franc.

According to the Purchasing Power Parity Theory,if the Inflation Rate