When the Mexican government changes the fixed rate of pesos per Canadian dollar from 1.5 to 3.0,the peso is _____.When the equilibrium exchange rate of Canadian dollars per euro changes from 1.15 to 1.30,the euro is _____.

Question

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When the fixed rate of pesos per Canadian dollar increases from 1.5 to 3.0, it means more pesos are needed to buy one Canadian dollar, indicating a devaluation of the peso. When the equilibrium exchange rate of Canadian dollars per euro increases from 1.15 to 1.30, it means more Canadian dollars are needed to buy one euro, indicating an appreciation of the euro.

When the Mexican Government Changes the Fixed Rate of Pesos