Asked by Mckenna Grimm on Apr 29, 2024
Verified
A weaker peso,relative to the US dollar,causes the demand for US exports to Mexico to______ and the demand for US imports from Mexico to______
A) Increase;Decrease
B) Decrease;Increase
C) Increase;Increase
D) Decrease;Decrease
Weaker Peso
A situation in which the value of the Mexican Peso decreases relative to other currencies.
US Exports
Goods or services produced within the United States and sold to buyers in other countries.
US Imports
Goods and services brought into the United States from other countries for sale, often impacted by trade policies, treaties, and economic conditions.
- Understand the implications of currency devaluation on the costs borne by consumers and suppliers, and how it modifies the prices of exports and imports.
Verified Answer
Learning Objectives
- Understand the implications of currency devaluation on the costs borne by consumers and suppliers, and how it modifies the prices of exports and imports.
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