Business, 16.06.2021 04:00 isabelcrosabal

Suppose the U. S. foreign assets are 67 percent of the U. S. GDP, and the U. S. foreign liabilities are 95 percent of the U. S. GDP. Moreover, suppose that 66 percent of U. S. foreign assets are denominated in foreign currencies, while all liabilities to foreigners are denominated in U. S. dollars. How will a 13 percent depreciation of the dollar affect foreigners' net foreign claims on the U. S. measured in U. S. dollars (as a percent of U. S. GDP)

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Suppose the U. S. foreign assets are 67 percent of the U. S. GDP, and the U. S. foreign liabilities...

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