Explain how each of the following conditions would be expected to affect the value of the Mexican peso.
|Situation||Expected Impact on the Exchange Rate of the Peso|
|a. Mexico suddenly experiences a high rate of inflation.|
|b. Mexico’s interest rates rise, while its inflation is expected to remain low.|
|c. Mexico’s central bank intervenes in the foreign exchange market by purchasing dollars with pesos.|
|d. Mexico imposes quotas on products imported from the United States.|