Answered

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Suppose there is a big drop in interest rates in Mexico and a small drop in U.S. interest rates. Everything else equal, what is likely to happen to value of the MXN?

Sagot :

varshamittal029

The value of MXN will increase.

The official currency of Mexico is The Mexican peso (MXN).

MXN is simply an abbreviation of the currency the Mexican peso, which is the official currency of the country of Mexico.

Similarly, the drop value in currency is defined as the expression that the currency is worth less as compared to all other countries.

When a currency's country interest rate drop, then the value of the currency increase. Here given in the question as there is a big drop in interest rates in Mexico and a small drop in U.S. interest rates, the value of MXN will increase as the drop is more in Mexico which affects its currency MXN.

Learn more about the Mexican peso (MXN)

here: https://brainly.com/question/11632483

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