Which of the following will result in a depreciation of the U.S.dollar against the Mexican peso?
A) an increase in the Mexican demand for U.S. imports
B) a decrease in the Mexican demand for U.S. imports
C) a decrease in the U.S. demand for Mexican imports
D) no change in the U.S. demand for Mexican imports

Question

Quizplus · Accepted Answer

If the Mexican demand for U.S. imports decreases, then there will be less demand for U.S. dollars to purchase those imports, causing the dollar to depreciate against the peso.

Which of the Following Will Result in a Depreciation of the U.S.dollar