Between 1993 and 2013, the Mexican peso fell against the U.S. dollar by almost three-fourths of its original value. However, economists have concluded that this did not result in a corresponding fall in the price of Mexican products expressed in dollars. What explains this apparent paradox?
A.
Interest rates in the United States were increasing.
B.
Inflation in the United States was moving up steadily.
C.
The inflation rate in Mexico over that same period was higher than that of the United States.
D.
The real exchange rate had fallen.