Following an increase in Mexican interest rates relative to US interest rates, which caused Mexican investors to borrow abroad to invest abroad, which of the following would occur?

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

B. The dollar would depreciate 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 exchange rate would not be affected, and neither would Mexican prices.