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AP® Macroeconomics

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What Can Cause a Change in the International Value of the Peso?

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Which of the following events would cause the change in the international value of the Mexican peso shown in the graph below?

A

A decrease in interest rates in Mexico relative to the United States.

B

An increase in Mexico's demand for exports from the United States.

C

A recession in the United States.

D

A decrease in interest rates in the United States relative to Mexico.

E

An increase in unemployment in Mexico.