Multiple Choice
Suppose that the exchange rate between the U.S.dollar and the Mexican peso starts out at $0.11 per peso.If the exchange rate then changes to $0.08 per peso,there will be a(n) __________ in the quantity demanded of dollars by Mexicans,and therefore there will be a(n) __________ in the quantity supplied of pesos to the foreign exchange market.
A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase
Correct Answer:
Verified
Correct Answer:
Verified
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