Suppose That Mexico Has External Debt,and the Value of the Country's

question 69

Multiple Choice

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.

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