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.
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a. True b. False
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Indicate whether the statement is true or false
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