
If the exchange rate moves from $.08 = 1 peso to $.12 = 1 peso, then
A) the peso has depreciated.
B) 1 dollar will buy more Mexican pesos than before.
C) the U.S. dollar has appreciated.
D) the prices of U.S. imports from Mexico are more expensive.
E) Mexicans will demand fewer U.S. products, other things being equal.
Correct Answer:
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