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If Mexico Has Foreign Assets Worth $100 Billion and No

Question 126

Multiple Choice

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.

Correct Answer:

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