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22-05-2023
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Assume that MXN/USD .04 in nominal currency exchange rate terms. Assume that the Federal Reserve Bank in the U.S. raises interest rates. After the interest rate increases, what would we expect either USD/MXN or MXN/USD shift to? (Select all of the correct answer choices below).
I. USD/MXN 30
II. MXN/USD .02
III. USD/MXN 25
IV. MXN/USD .05

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