Suppose that Mexico experienced a very severe period of inflation in 1972. As prices in Mexico rose, the demand in the foreign exchange market for Mexican pesos:

Respuesta :

Answer:

demand for pesos would fall and supply would rise. their value would decrease as a result

Explanation:

Inflation is a persistent rise in general price level.

When there is high inflation in a country, the demand for the currency would fall because the value of the currency is low. this fall in demand coupled with the excess supply of the currency would lead to a fall in the value of the currency.