If debt contracts are denominated in foreign currency, then an unanticipated decline in the value of the domestic currency results in

If debt contracts are denominated in foreign currency, then an unanticipated decline in the value of the domestic currency results in 




A) a decline in a firm's net worth.
B) an increase in a firm's net worth.
C) a decrease in adverse selection and moral hazard.
D) an increase in willingness to lend.





Answer: A


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