weak peso is most likely to cause
A) added employment and inflation in Mexico
B) less unemployment but more inflation in Mexico
C) more unemployment but less inflation in Mexico
D) less unemployment and less inflation in Mexico

Question

Quizplus · Accepted Answer

A weak peso would make Mexican exports cheaper, leading to an increase in demand for Mexican products from foreign countries, which would create more jobs and reduce the levels of unemployment in the country. However, a weak peso could also lead to higher inflation as the cost of imported goods would increase, leading to higher prices for consumers. Therefore, there would be less unemployment but more inflation in Mexico.

Weak Peso Is Most Likely to Cause