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12 11 10 9 7 5 6 7 s 9 9 .25 .2 .15 .05 S D Quantity of U.S. Dollars Traded for Pesos

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12 11 10 9 7 5 6 7 s 9 9 .25 .2 .15 .05 S D Quantity of U.S. Dollars Traded for Pesos (billions) (a) The IJ_S. dollar exchange rate 50 60 70 80 90 Quantity of Pesos Traded for U.S. Dollars (billions) (b) The Mexican peso exchange rate The graphs above depict the foreign exchange market for dollars in Econoland relative to the peso (the currency of Econoland is US dollars). What might cause the dollar to appreciate in the FOREX market? O O o o A. The demand for pesos increases B. the supply of dollars increases C. the supply of dollars decreases D. foreign nations become poorer relative to Econoland

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