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What are net exports? How will an appreciation of the peso affect Mexico's net exports?
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Macroeconomics

Macroeconomics


Edition: 3rd
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doublekuddoublekud
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The net exports of a country refer to the value of the exports from the country minus the value of the imports into the country. If the peso appreciates, exports from Mexico will become more expensive, causing exports to decrease and imports to increase. Hence, an appreciation of the peso will reduce Mexico's net exports.
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