Respuesta :
If the Canadian consumers increase their demand for Mexican financial asset; the supply of Canadian dollar will increase, the value of the peso will increase and the Canadian net exports will increase.
if canadian consumers increase their demand for mexican financial assets, the situation would lead to:
supply of canadian dollars: increase, value of the peso: increase, canadian net exports: increase
When Canadian consumer demanded a lot of Mexican assets, a lot of Canadian dollar would be USED to by the asset, which increases the supply. Now, the profit moves into Mexico's pocket which will increase the value of their peso.
supply of canadian dollars: increase, value of the peso: increase, canadian net exports: increase
When Canadian consumer demanded a lot of Mexican assets, a lot of Canadian dollar would be USED to by the asset, which increases the supply. Now, the profit moves into Mexico's pocket which will increase the value of their peso.