At the end of 1993, the exchange rate between Mexico and the United States was 3.1 pesos to the dollar. By the end of 1994, the exchange rate was 5 pesos to the dollar, and at the end of 1995, it was 7.7 pesos to the dollar. Now it is around 20 pesos to the dollar. 

a) Over this period, the dollar [appreciated/depreciated] against the peso. 

b) A $1,000 piece of construction equipment made in the United States would have cost how many pesos in 1993? How much would It have cost in 2022? 

c) You would expect exports from the United States to Mexico to [fall/rise/stagnate]? 

d) Suppose it cost 1,000 pesos to make a television set in Mexico in the early 1990s. That was equivalent to $ ______ in 1993 and $________ in 2022. (Round your answers to two decimal points.) e) You would expect imports from Mexico to the United States to [rise/fall/stay the same].

Answer rating: 100% (QA)

a Over this period the dollar appreciated against the peso b To calculate the cost of the constructi... View the full answer