According to relative PPP, which of the following is most likely to happen if the Bank of Mexico pegs or fixes the value of the peso against the U.S. dollar?
A- Mexico will have the same interest rates as the U.S.
B- Mexican GDP will grow faster than it otherwise would.
C- Mexico will have the same rate of inflation as the U.S.
D- Mexico will run a balance of trade surplus with the U.S.