Assume That, Under a System of Flexible Exchange Rates, Mexicans

Multiple Choice

Assume that, under a system of flexible exchange rates, Mexicans decide to increase their investments in Canada.As a result:

A) Canadians will want to buy fewer Mexican goods at the new exchange rate.
B) the peso and the dollar will both depreciate in value.
C) the peso and the dollar will both appreciate in value.
D) the peso will depreciate and the dollar will appreciate in value.