You are made better off in which of the following situations?
A) you borrow 10,000 pesos,you earn income in dollars,the dollar depreciates against the peso,you must pay back the loan in pesos
B) you borrow $10,000,you earn income in pesos,the dollar depreciates against the peso,you must pay back the loan in dollars
C) you borrow $10,000,you earn income in pesos,the dollar appreciates against the peso,you must pay back the loan in dollars
D) you borrow 10,000 pesos,you earn income in pesos,the dollar depreciates against the peso,you must pay back the loan in pesos
Correct Answer:
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