Question

Assume that canadian consumers increase their demand for mexican financial assets. how would the international supply of canadian dollars, the value of the mexican peso relative to the canadian dollar, and canadian net exports to mexico change? supply of value of canadian net canadian dollars the peso exports (a increase increase increase (b increase increase decrease (c decrease increase decrease (d decrease decrease increase (e no change increase decrease

Answer 1

If the Canadian consumers increase their demand for Mexican financial asset; the supply of Canadian dollar will increase, the value of the peso will increase and the Canadian net exports will increase. 

Answer 2

if canadian consumers increase their demand for mexican financial assets, the situation would lead to:
supply of canadian dollars: increase, value of the peso: increase, canadian net exports: increase

When Canadian consumer demanded a lot of Mexican assets, a lot of Canadian dollar would be USED to by the asset, which increases the supply. Now, the profit moves into Mexico's pocket which will increase the value of their peso.