Assume the Following Exchange Rates: $1 = NZ$3, NZ$1 =

Multiple Choice

Assume the following exchange rates: $1 = NZ$3, NZ$1 = MXP2, and $1 = MXP5. Given this information, as you and others perform triangular arbitrage, the exchange rate of the New Zealand dollar (NZ) with respect to the U.S. dollar should ____, and the exchange rate of the Mexican peso (MXP) with respect to the U.S. dollar should ____.

A) appreciate; depreciate
B) depreciate; appreciate
C) depreciate; depreciate
D) appreciate; appreciate
E) remain stable; appreciate