Multiple Choice
Whenever a nation has substantial external debts and assets denominated in foreign currency:
A) it is easier to manage, since changes in value are often offsetting.
B) there can be large and destabilizing wealth effects.
C) its interest payments on the debt will be matched by interest earnings on the assets.
D) the risk of default becomes very large.
Correct Answer:
Verified
Correct Answer:
Verified
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