Figure 18.2
-Referring to Figure 18.2, U.S. goods will become more expensive in Mexico if the exchange rate goes from ________ to ________ pesos to the dollar.

Question

Quizplus · Accepted Answer

When the exchange rate increases from 12 to 13 pesos to the dollar, it means that each dollar can buy more pesos. Therefore, U.S. goods become more expensive in Mexico because Mexicans need more pesos to buy the same amount of dollars to purchase U.S. goods.

Figure 18.2 -Referring to Figure 18.2, U.S. Goods Will Become More Expensive