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Suppose the nominal exchange rate between the Mexican peso and the U.S. dollar is fixed, and there is higher inflation in Mexico than in the

Suppose the nominal exchange rate between the Mexican peso and the U.S. dollar is fixed, and there is higher inflation in Mexico than in the United States. Then: The Mexican peso is ____ in real terms and the dollar is experiencing a ____ and the Mexican balance of payments should ____. (Fill in the gaps) a) appreciating; nominal depreciation; deteriorate b) depreciating; real appreciation; deteriorate c) appreciating; real depreciation; improve d) appreciating; real depreciation; deteriorate e) depreciating; real appreciation; improve

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