Which of the following would NOT be a cause for an increased American demand for the Mexican peso?
A)The United States having lower interest rates than Mexico
B)Increased American demand for Mexican goods
C)The expectation by speculators that the value of the peso is edging up
D)More economic expansion in the United States
E)None of the above.

Question

Quizplus · Accepted Answer

An increased economic expansion in the United States would lead to a stronger dollar and a decreased demand for foreign currencies like the Mexican peso. Therefore, it would not be a cause for an increased American demand for the Mexican peso.

Which of the Following Would NOT Be a Cause for an Increased