After a Depreciation of the Home Currency, What Is the Situation

question 50

Multiple Choice

After a depreciation of the home currency, what is the situation with a nation's external wealth?

• A) It will rise if external liabilities exceed external assets.
• B) It will fall if external liabilities exceed external assets.
• C) It will rise if domestic liabilities exceed domestic assets.
• D) It will fall if domestic liabilities exceed domestic assets.

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