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In country A external assets are all in foreign currency and external liabilities are all in domestic currency.When expressed in domestic currency both assets and
In country A external assets are all in foreign currency and external liabilities are all in domestic currency.When expressed in domestic currency both assets and liabilities are equal to 120 currency units.If domestic currency (DC) depreciates by 10 percent against foreign currency (FC), what will be the currency-induced valuation effect?
Use positive number answer for gains and negative number for losses.Express your answer in units of domestic currency.
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