Question: Suppose that the nominal exchange rate between the U . S . dollar and the Mexican peso is 0 . 1 0 dollars per peso.
Suppose that the nominal exchange rate between the US dollar and the Mexican peso is dollars per peso. If Mexico's inflation is percent and the United States' inflation is percent, from the US point of view, the real exchange rate
A appreciates to dollars per peso.
B depreciates to dollars per peso.
C appreciates to dollars per peso.
D depreciates to dollars per peso.
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