Assume That,under a System of Flexible Exchange Rates,Mexicans Decide to Increase

Multiple Choice

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

A) Canadians will want to buy fewer Mexican products at the new exchange rate
B) the peso and the Canadian dollar will both depreciate in value
C) the peso and the Canadian dollar will both appreciate in value
D) the peso will depreciate and the Canadian dollar will appreciate in value
E) there will be no change in the values of the two currencies