The following question are based on the following graph, showing the market for pesos. Mexico and the United States are engaged in a system of flexible exchange rates.

-If people in Mexico decide to purchase shares of stock on the U.S.stock exchange,the exchange rate (in terms of the dollar to the peso)
A) rises because demand increases.
B) falls because demand increases.
C) falls because demand decreases.
D) rises because demand decreases.
E) falls because supply increases.

Question

The following question are based on the following graph, showing the market for pesos. Mexico and the United States are engaged in a system of flexible exchange rates.
 
-If people in Mexico decide to purchase shares of stock on the U.S.stock exchange,the exchange rate (in terms of the dollar to the peso)
A) rises because demand increases. 
B) falls because demand increases. 
C) falls because demand decreases. 
D) rises because demand decreases. 
E) falls because supply increases.

Quizplus · Accepted Answer

The Answer of The following question are based on the following graph, showing the market for pesos. Mexico and the United States are engaged in a system of flexible exchange rates.
 
-If people in Mexico decide to purchase shares of stock on the U.S.stock exchange,the exchange rate (in terms of the dollar to the peso)
A) rises because demand increases. 
B) falls because demand increases. 
C) falls because demand decreases. 
D) rises because demand decreases. 
E) falls because supply increases.

The Following Question Are Based on the Following Graph, Showing