Borrowing in foreign currencies
A) hurts a country with a depreciating currency because it means that the real cost of the loans increases as the domestic currency depreciates.
B) hurts a country with an appreciating currency because it means that the real cost of the loans increases as the domestic currency appreciates.
C) helps a country with a depreciating currency because it means that the real cost of the loans decreases as the domestic currency depreciates.
D) helps a country with an appreciating currency because it means that the real cost of the loans increases as the domestic currency appreciates.
Correct Answer:
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