A large increase in the income level in the U. S. along with no growth in Mexico’s income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) in U. S. demand for Mexico’s goods, and the Mexican peso should .

a. increase; depreciate
b. increase; appreciate
c. decrease; appreciate
d. decrease; depreciate

(B) increase; appreciate.

Explanation:

A large increase in the income level in the U.S. along with no growth in Mexico’s income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) INCREASE in U.S. demand for Mexico’s goods, and the Mexican peso should APPRECIATE.

Because the large increase in the income level in the U.S will result to an increase in U.S demand. And consequently, the Mexican peso would appreciate. Appreciation, in general terms, is an increase in the value of an asset over time and one of reasons this increase can occur is increased demand.

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c is the answer, and do you have a ps4?