When the exchange rate for the Mexican peso changes from 10 pesos to the U.S dollar to 9 pesos to the U.S. dollar,then the Mexican peso has ________ and the U.S. dollar has ________.

Question

Quizplus · Accepted Answer

When the exchange rate for the Mexican peso changes from 10 pesos to the U.S dollar to 9 pesos to the U.S. dollar, it means that now each U.S. dollar can buy more Mexican pesos than before. This situation indicates that the Mexican peso has appreciated. On the other hand, since it takes less U.S. dollars to buy the same amount of Mexican pesos, it implies that the U.S. dollar has depreciated. Therefore, Choice C is the correct answer.

When the Exchange Rate for the Mexican Peso Changes from 10