4. Explain why the U.S. demand for Mexican pesos is downsloping and the supply of pesos to Americans is upsloping. Indicate whether each of the following would cause the Mexican peso to appreciate or depreciate:

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a. TheUnitedS tates unilaterally reduces tariffs on Mexican pr oducts.

b. Mexicoencounter sse vereinflation.

c. Deterioratingpoliticalr elationsr educeAmerican tourism in Mexico.

d. TheU.S. economymo vesintoase verer ecession.

e. TheUnitedS tates engages in a high-interest-rate monetary policy.

f. Mexicanpr oductsbecomemor ef ashionableto U.S. consumer s.

g. TheM exicango vernmentencour agesU.S. firmsto investinM exicanoilfields.