With a system of floating, or flexible, exchange rates, a decrease in the U.S. demand for Mexican pesos with no change in supply will shift the U.S. demand curve for pesos to the:

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When there is a decrease in the U.S. demand for Mexican pesos, the demand curve shifts to the left. This shift leads to a decrease in the equilibrium dollar price of pesos because there is less demand for pesos at any given price, leading to a lower price at which pesos and dollars are exchanged.

With a System of Floating, or Flexible, Exchange Rates, a Decrease