You earn income in dollars-dollar depreciates against peso

Assignment Help Business Economics

Reference no: EM131112619

You are made better off in which of the following situations?

A) you borrow 10,000 pesos, you earn income in dollars, the dollar depreciates against the peso, you must pay back the loan in pesos

B) you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in dollars

C) you borrow $10,000, you earn income in pesos, the dollar appreciates against the peso, you must pay back the loan in dollars

D) you borrow 10,000 pesos, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in pesos.

Reference no: EM131112619

Questions Cloud

Focused on how banks create money : We have focused on how banks create money. I spoke to a banker the other day; he assured me that he did not create money. In fact, he stated that all he did was provide service to the community by lending whatever funds were available to the local me..

Possible disadvantage of using work teams : Which of the following is a possible disadvantage of using work teams

Long-run competition-building production facilities : Long-run competition. Most of the cost of a new airplane is in the research and development and in building production facilities. By contrast, the marginal cost of producing another plane is relatively low. a) (2 points) You have been hired by Boein..

Supply in the foreign exchange markets to respond : If, at the current exchange rate between the dollar and the Norwegian kroner of 5.78 kroner per dollar, the dollar is "overvalued," how do you expect demand and supply in the foreign exchange markets to respond?

You earn income in dollars-dollar depreciates against peso : you borrow 10,000 pesos, you earn income in dollars, the dollar depreciates against the peso, you must pay back the loan in pesos. you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in do..

What are the total costs-revenues and profits : Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. What are the total costs, revenues, and profits ..

Events on equilibrium price and quantity of market : State in words and show with a graph the effect of the following events on equilibrium price and quantity of the market given.

Disadvantages of cost-plus pricing except : All of the following are disadvantages of cost-plus pricing except:

Name two advantages of the behavioral model : Name two advantages of the behavioral model.

User Account

All Pages