Suppose that Mexico has external debt, and the value of the country's currency, the peso, falls. Which of the following is true?
A) The peso value of the loans will decrease as well.
B) Mexico will find it easier to pay off its external debt.
C) Mexico will declare bankruptcy.
D) The cost of debt service will be higher.
D
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Research shows that prices tend to remain sticky for a longer period of time
A) in the manufacturing sector than in the service sector. B) in the service sector than in the manufacturing sector. C) in Western Europe than in the United States. D) in the United States than in Western Europe.
In the classical model, an increase in government spending shifts the
a. demand for loanable funds to the right. b. demand for loanable funds to the left. c. supply of loanable funds to the right. d. supply of loanable funds to the left.
A monopolist sells a homogeneous good in several distinct submarkets, and the elasticities of demand differ in these submarkets
If the monopolist selects the rate of output to sell in each submarket by equating marginal revenue and marginal cost, then A) all customers in all markets end up paying the same price. B) it is not price discriminating, but merely price differentiating. C) customers in markets with more elastic demand will pay higher prices than customers in markets with less elastic demand. D) customers in markets with more elastic demand will pay lower prices than customers in markets with less elastic demand.
Unlike consumers and business firms, the public sector has no maximizing goals.
Answer the following statement true (T) or false (F)