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