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Determinants of foreign exchange rates. 1. Price level in Mexico increases. The Market for Dollars. The Market for Pesos. S. S. Dollar / Pesos exchange rate. Peso / dollar exchange rate. D. D. Quantity of Dollars. Quantity of Pesos.
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1. Price level in Mexico increases The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
1. Price level in Mexico increasesthe dollar appreciates the peso depreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
2. Interest rates in Mexico increase The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
2. Interest rates in Mexico increasethe dollar depreciates the peso appreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
3. Interest rates in the US increase The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
3. Interest rates in the US increasethe dollar appreciates the peso depreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
4. Mexico’s real GDP increases The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
4. Mexico’s real GDP increasesthe dollar appreciates the peso depreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
5. US government reduces taxes The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
5. US government reduces taxesthe dollar depreciates the peso appreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
6. Americans increase their demand for Mexican tomatoes The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
6. Americans increase their demand for Mexican tomatoesthe dollar depreciates the peso appreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
7. American investors feel the Mexican economy will grow The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
7. American investors feel the Mexican economy will growthe dollar depreciatesthe peso appreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
8. American investors feel the Mexican economy is unstable The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
8. American investors feel the Mexican economy is unstablethe dollar appreciates the peso depreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
9. Mexican demand for US guns increases The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
9. Mexican demand for US guns increasesthe dollar appreciates the peso depreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
10. American demand for cocaine shipped through Mexico increases The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
10. American demand for cocaine shipped through Mexico increasesthe dollar depreciates the peso appreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
11. The US imposes a tariff on Mexican goods The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos
11. The US imposes a tariff on Mexican goodsthe dollar appreciates the peso depreciates The Market for Dollars The Market for Pesos S S Dollar / Pesos exchange rate Peso / dollar exchange rate D D Quantity of Dollars Quantity of Pesos