Do you agree that currency depreciation will lead to an increase in the debt burden of the companies that borrow in foreign currency? Explain with an example
Companies that borrow in foreign currency will see their debts increase whenever their currency values decline. For example, an Indonesian business that borrowed $1,000 in February 2009, when $1 was worth 8,574 rupiah, thought it owed 8.6 million rupiah. But when the dollar became worth 11,765 rupiah in May 2011, the company's debt skyrocketed to 11.8 million rupiah.
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Assume that a country has a domestic demand curve defined as Qd = 100 - 2P and a domestic supply curve defined as Qs = -20 + 3P. What is the country's import demand curve (Qm)?
What will be an ideal response?
Explain how the presence of asymmetric information in car insurance markets may lead people who are good drivers or even average drivers to choose not to buy car insurance unless the law requires it
The problem with public goods is that
a) too many people are excluded from their use and must find alternatives in the private sector b) the opportunity to act as a free rider is a disincentive to pay for public goods c) they compete with private goods, driving companies out of business d) they could be provided more efficiently by private companies e) they are distributed according to willingness to pay rather than ability to pay
The organizational structure where organizations are structured around a special project or event
a. functional b. line and staff c. product d. matrix