When a Mexican resident buys a ukulele from a U.S. producer, there is a(n)

Question

Quizplus · Accepted Answer

When a Mexican resident buys a ukulele from a U.S. producer, they would need to pay in U.S. dollars. This would increase the demand for U.S. dollars in the foreign exchange market as the Mexican resident would need to exchange their Mexican pesos for U.S. dollars to make the purchase. Therefore, the correct choice is C, an increase in the demand for dollars in the foreign exchange market.

When a Mexican Resident Buys a Ukulele from a U