Suppose there are only two countries in the world,Mexico and the United States.In the foreign exchange market,it follows that the

Question

Quizplus · Accepted Answer

The supply of pesos is linked to the demand for dollars because when people in Mexico want to buy goods or services from the United States, they need to exchange pesos for dollars, thus increasing the supply of pesos in the foreign exchange market.

Suppose There Are Only Two Countries in the World,Mexico and the United