If Mexico has foreign assets worth $100 billion and no liabilities, a 15% depreciation of the peso will result in a(n):
A) increase in liabilities at home by 100 billion pesos.
B) decrease in assets at home by 150 billion pesos.
C) decrease in overall wealth by 15%.
D) increase in overall wealth.
Ans: D) increase in overall wealth.
Economics
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When Zane deposits $20,000 cash in his checkable deposit at the Citicorp and the Citicorp's desired reserves increase by $5,000, the desired reserve ratio is
A) 25 percent. B) 75 percent. C) 5 percent. D) 20 percent. E) $5,000.
Economics
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000
What are the implicit costs of her business? A) $12,000 B) $30,000 C) $72,000 D) $86,000
Economics