In a foreign exchange market diagram with dollars per peso on the vertical axis,the quantity of __________ would be on the horizontal axis,and the U.S.demand for Mexican goods would help to determine the __________ curve.

Question

Quizplus · Accepted Answer

In a foreign exchange market diagram where the exchange rate is expressed as dollars per peso, the quantity axis (horizontal) represents the amount of pesos being traded. The U.S. demand for Mexican goods would increase the demand for pesos to pay for these goods, thus affecting the demand curve.

In a Foreign Exchange Market Diagram with Dollars Per Peso