Suppose that Mexico has adopted a floating exchange rate for its currency, the Mexican Peso. When United States' households greatly increase their demand for Mexican sparkling water (like Topo Chico),...

Extracted text: Suppose that Mexico has adopted a floating exchange rate for its currency, the Mexican Peso. When United States' households greatly increase their demand for Mexican sparkling water (like Topo Chico), the will increase, and the Mexican Peso will O Demand for Mexican Pesos; appreciate O Supply of Mexican Pesos; appreciate O Demand for Mexican Pesos; depreciate Supply of Mexican Pesos; depreciate