Which of the following is true during the 1994 Mexican exchange rate crisis? a) The Mexican central bank let the peso float because of the quick depreciation of peso. b) Mexican international reserves increased dramatically. c) Capital rushed into Mexico. d) Mexican peso appreciated.

Which of the following is true during the 1994 Mexican exchange rate crisis? a) The Mexican central bank let the peso float because of the quick depreciation of peso. b) Mexican international reserves increased dramatically. c) Capital rushed into Mexico. d) Mexican peso appreciated.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: International Finance

Section: Chapter Questions

Problem 4QP

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Concept explainers

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.

Question

Which of the following is true during the 1994 Mexican exchange rate crisis?
a) The Mexican central bank let the peso float because of the quick depreciation of peso.
b) Mexican international reserves increased dramatically.
c) Capital rushed into Mexico.
d) Mexican peso appreciated.

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