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1a. If there is inflation in Mexico show in signs what happens to R, X and M ? b. If e = $1.70/Pd becomes =

1a. If there is inflation in Mexico show in signs what happens to R, X and M ?

b. If e = $1.70/Pd becomes = - $2.10/Pd, how does this affect R, X and M?

c. Given that it is $ 0.54 = 1TL and $0.35 = 1Rs - what is the cross exchange rate? Make sure to write out the currencies as well.

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