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Assume the US dollar exchanges for the Mexican peso at the rate of $1 US = 25 Pesos
1a. What is a peso worth in terms of US dollars?
2. Assume the exchange rate is now $1 US = 100 Pesos
a.which currency as appreciated an why?
b. which has depriciated and why?
c. identify one cause on the demand side, that would have caused the Peso to change in value.
d. identify one cause on the supplyside, that would have caused the Peso to change in value.
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