Suppose you owe 70 billion Pesos to Mexican Government. The current exchange rate 500,000 pesos per dollar. After 1 month, the exchange rate becomes 1,000,000 pesos per dollar due to an increase in demand for dollar. As a result, you would A. not answer because there are too many zeros in a bilion OB. lose about $70,000 OC. gain about $70,000 O D. not answer because the information given is not suficient
Suppose you owe 70 billion Pesos to Mexican Government. The current exchange rate 500,000 pesos per dollar. After 1 month, the exchange rate becomes 1,000,000 pesos per dollar due to an increase in demand for dollar. As a result, you would A. not answer because there are too many zeros in a bilion OB. lose about $70,000 OC. gain about $70,000 O D. not answer because the information given is not suficient
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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