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Suppose That an Increase in a Nation's Income Causes the Nation's

Question 41

Multiple Choice

Suppose that an increase in a nation's income causes the nation's residents to buy more domestic and foreign goods.Given this,if U.S.residents experience an increase in income,but Mexican residents do not,it is likely that,ceteris paribus,


A) both the U.S.dollar and the Mexican peso will depreciate.
B) both the U.S.dollar and the Mexican peso will appreciate.
C) the U.S.dollar will depreciate and the Mexican peso will appreciate.
D) the U.S.dollar will appreciate and the Mexican peso will depreciate.

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