Each blank is to choose DECREASE or INCREASE.

Back to Assignment Attempts Average 0/2 5. Economic exposure Consider a U.S. firm that deals in only one foreign currency, the peso. Fill in the blanks to describe the economic exposure of the firm to changes in the value of the peso. If the peso depreciates, the value of cash flows from the firm's exports (in pesos) . However, if the peso appreciates, the value of the cash flows from those exports (in pesos) If the peso depreciates, the cost of the firm's imported supplies, denominated in pesos, . However, if the peso appreciates, the cost of the firm's imported supplies, denominated in pesos