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Suppose two countries, Mexico and Peru, trade freely and allow investments to flow across their borders as well. Draw two graphs: one for the supply
Suppose two countries, Mexico and Peru, trade freely and allow investments to flow across their borders as well. Draw two graphs: one for the supply and demand for Mexico's currency and one of supply and demand for Peru's currency. Be sure to label the axes of your graphs. Show how the value of each currency will be affected if the interest rate on investments in Mexico rises while the return on investments in Peru remains unchanged
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