Imagine that only two nations exist, Canada and Mexico.Suppose Mexico experiences a drop in the price of foreign exchange.How will this affect the ability of the Mexican people to buy currency?
A) They will be able to buy more Canadian currency, because the prices of imports from Canada will have increased.
B) They will be able to buy less Canadian currency, because Canadian prices on goods will have decreased.
C) They will be able to buy less Canadian currency, and imports from Canada will be more expensive.
D) They will be able to buy more Canadian currency, and imports from Canada will be cheaper.
Correct Answer:
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