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An Increase in the Supply of Mexican Pesos to Persons

Question 57

Multiple Choice

An increase in the supply of Mexican pesos to persons holding U.S. dollars would:


A) make the dollar worth less in comparison to the peso.
B) make the dollar worth more in comparison to the peso.
C) have no effect on the value of the dollar or the peso if there were no change in the demand for pesos.
D) increase the value of the dollar in comparison to the peso, and increase the value of the peso in comparison to the dollar.

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