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Which of the Following Would Most Likely Cause the Spot

Question 2

Multiple Choice

Which of the following would most likely cause the spot market value of the dollar to appreciate relative to the Mexican peso?


A) an increase in Mexican interest rates
B) the expectation that the dollar will depreciate versus the peso in the coming months
C) weakening in the US stock market
D) increasing popularity of Mexican goods in the US
E) the expectation of persistently high Mexican inflation relative to US inflation

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