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babymother [125]
2 years ago
7

Suppose the value of the Mexican peso depreciates relative to the US dollar. How would this affect the United States or Mexico?

Social Studies
1 answer:
CaHeK987 [17]2 years ago
4 0

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.

<h3>How would this affect the United States or Mexico?</h3>

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:

brainly.com/question/13802568

#SPJ1

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