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Exam Question suppose I expect the Euro to keep losing loosing its value (Deprecate) shold I increase borrowing for fronce or the Opposit

Finance Dec 28, 2020

Exam Question suppose I expect the Euro to keep losing loosing its value (Deprecate) shold I increase borrowing for fronce or the Opposit

Expert Solution

Yes you should increase the borrowing in the France because now you can buy more Euros when compared to your currency. On accouunt of euro depreciation, now you can buy more euros with the same domestic currency which would make you to be more comfort in repaying its debt obligations of the loan.

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