Following an increase in Mexican interest rates relative to U.S. interest rates (which causes Mexican investors to borrow abroad to invest domestically), which of the following is expected to occur?

a. The dollar would appreciate relative to the peso, and Mexican prices would increase.

b. The dollar would appreciate relative to the peso, and Mexican prices would decrease.

c. The dollar would depreciate relative to the peso, and Mexican prices would increase.

d. The dollar would depreciate relative to the peso, and Mexican prices would decrease.