Home's currency is the peso and trades at 2 pesos per dollar. Home has external assets of $100 billion, all of which are denominated in dollars. It has external liabilities of $250 billion, 50% of which are denominated in dollars. What happens to net wealth (in pesos) if the peso depreciates to 3 pesos per dollar?

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The Answer of Home's currency is the peso and trades at 2 pesos per dollar. Home has external assets of $100 billion, all of which are denominated in dollars. It has external liabilities of $250 billion, 50% of which are denominated in dollars. What happens to net wealth (in pesos) if the peso depreciates to 3 pesos per dollar?

Home's Currency Is the Peso and Trades at 2 Pesos