When the U.S.dollar appreciates relative to the Mexican peso:

Question

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When the U.S. dollar appreciates relative to the Mexican peso, it means that each dollar can buy more pesos than before. This makes U.S. goods more expensive for Mexican consumers (not cheaper, as B suggests) and makes Mexican goods cheaper for U.S. consumers (contrary to A). U.S. tourists in Mexico find their dollars stretch further, making them better off, not worse off as D suggests. Therefore, Mexican tourists to the U.S. are worse off because their pesos convert to fewer dollars, making U.S. goods and services more expensive for them.