Listed in the following table are two sets of figures: the total quantity of Mexican pesos (new pesos) in circulation (the total amount of Mexican money available) and the peso price of a U.S. dollar (how many pesos are needed to purchase one U.S. dollar).

Values are given for the years 1990–2009 for each variable.

a. Plot each variable by measuring time (years) on the horizontal axis and, in the first graph, pesos in circulation on the vertical axis and, in the second graph, peso price of a dollar on the vertical axis.

b. Plot the combinations of variables by measuring pesos in circulation on the horizontal axis and peso prices of a dollar on the vertical axis.

c. In each of the graphs in parts a and b, what are the dependent and independent variables?

d. In each of the graphs in parts a and b, indicate whether the relationship between the dependent and independent variables is direct or inverse.

Transcribed Image Text:

Year Pesos in Circulation (billions) Peso Price of a U.S. Dollar 1990 19.6 2.8126 1991 27.0 3.0184 1992 36.2 3.0949 1993 42.0 3.1156 1994 47.2 3.3751 1995 56.9 6.4194 1996 66.8 7.5994 1997 84.0 8.5850 1998 109.0 9.9680 1999 131.0 9.4270 2000 188.8 9.6420 2001 209.0 9.2850 2002 225.0 9.5270 2003 264.0 10.9000 2004 303.0 11.4000 2005 340.0 10.4750 2006 380.0 10.87 2007 450.0 10.86 2008 495.0 13.53 2009 578.0 13.76