If the U.S. dollar appreciates, an MNC's: a. exports denominated in foreign currencies will probably increase. b. U.S. sales wil

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If the U.S. dollar appreciates, an MNC's: a. exports denominated in foreign currencies will probably increase. b. U.S. sales wil

l probably decrease. c. interest owed on foreign funds borrowed will probably increase. d. exports denominated in U.S. dollars will probably increase. e. All of these choices are correct.

Business

1 answer:

Hoochie [10] · Answer 1 · 2022-12-08T08:04:12+03:00

Most likely when the U.S. dollar appreciates, the MNC's interest owed on foreign funds borrowed will probably increase.

MNC refers to Multinational corporation .

The Multinational corporation are known to borrow from foreign bodies in dollars.

Hence, when the dollar appreciates, the amount owed to the foreign bodies will increase consequently.

Therefore, the Option C is correct because the MNC's interest owed on foreign funds borrowed will probably increase when U.S. Dollars appreciates.

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