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Suppose there is a small increase in the income level in

1. Suppose there is a small increase in the income level in Mexico and a small decrease in the U.S. income level. Everything else equal, what is likely to happen to value of the MXN?

2. The USD appreciates 8% versus the JPY. The USD appreciates 2% versus the MXN. What's the approximate appreciation or depreciation we might see in the JPY/MXN exchange rate?

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Finance Basics: Suppose there is a small increase in the income level in

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