Assume that Brazil and Mexico have floating exchange rates. Other things unchanged, if the price level is stable in Mexico but Brazil experiences rapid inflation:
A) gold bullion will flow into Brazil.
B) the Mexican peso will depreciate.
C) the Brazilian real will depreciate.
D) the Brazilian real will appreciate.
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Home » Business » Assume that Brazil and Mexico have floating exchange rates. Other things unchanged, if the price level is stable in Mexico but Brazil experiences rapid inflation: A) gold bullion will flow into Brazil. B) the Mexican peso will depreciate.