4. All of the above are Correct. 10. A haircut costs 200 pesos in Mexico and $20 in the U.S. The exchange rate is 12.5 pesos per dollar. The re exchange rate is a. less than one. Haircuts in Mexico are cheaper than in the U.S. b. less than one. Haircuts in Mexico are more expensive than in the U.S. c. greater than one. Haircuts in Mexico are cheaper than in the U.S. d. greater than one. Haircuts in Mexico are more expensive than in the U.S