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This is the only multiple answer question on the exam. In other words, there is more than one answer. Assume that MXN/USD .04 (point 04)
This is the only multiple answer question on the exam. In other words, there is more than one answer. Assume that MXN/USD .04 (point 04) in nominal currency exchange rate terms. Assume that the Federal Reserve Bank in the U.S. raises interest rates. After the interest rate increase, what would we expect either USD/MXN or MXN/USD shift to? (Select all correct answer choices below). I. USD/MXN 30 II. MXN/USD .02 (point 02). III. USD/MXN 25 IV. MXN/USD .05 (point 05)
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