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Assume the following exchange rates: $ 1 = NZ$ 3 , NZ$ 1 = MXP 2 , and $ 1 = MXP 5 . Given
Assume the following exchange rates: $ NZ$ NZ$ MXP and $ MXP Given this information, as you and others perform triangular arbitrage, the exchange rate of the New Zealand dollar NZ with respect to the US dollar should and the exchange rate of the Mexican peso MXP with respect to the US dollar should
Question options:
A appreciate; depreciate
B depreciate; appreciate
C depreciate; depreciate
D appreciate; appreciate
E remain stable; appreciate
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