If the dollar depreciates relative to the Mexican peso,
A) Canadian exports to Mexico become more expensive.
B) Canadian exports to Mexico become less expensive.
C) Mexican imports to Canada become less expensive.
D) the value of Mexican imports to Canada does not change, but the value of Canadian exports to Mexico increases.

Question

Quizplus · Accepted Answer

If the dollar depreciates relative to the Mexican peso, it means that the peso strengthens, making it more valuable compared to the dollar. This means that Canadian exports to Mexico become less expensive, as the pesos required to buy Canadian goods decrease.

If the Dollar Depreciates Relative to the Mexican Peso