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Suppose the value of the Mexican peso depreciates relative to the US dollar. How would this affect the United States or Mexico?
O A Consumers in Mexico would be able to purchase more goods from the United States for their money.
OB. US exporters would see an increase in demand in Mexico for their goods.
C Mexican exporters would seen an decrease in US demand for their goods.
D. Consumers in the United States would be able to purchase more goods from Mexico for their money.


Sagot :

This affect the United States or Mexico through options B and D: US exporters would see an increase in demand in Mexico for their goods and consumers in the United States would be able to purchase more goods from Mexico for their money.

How would this affect the United States or Mexico?

Value of the Mexican peso depreciates relative to the US dollar. This will make Mexican goods cheaper to the US residents because now they've to pay less USD to buy 1 unit of Mexican peso.

However, Mexicans will find US goods costlier than before because now they have to pay more pesos to buy 1 USD.

Therefore, demand for Mexican export will increase and the demand for US export will decrease.

Hence, correct answer is option B and D

Learn more about Mexico, refer to the link:

https://brainly.com/question/13802568

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