Was reading in the Dixon textbook about appreciation and depreciation and was unable to understand the following:
-an appreciation decreases the interest servicing cost on foreign debt
-an appreciation will reduce the $A value of foreign debt that has been borrowed
-a depreciation increases the $A value of foreign income earned on Australia's investment
-a depreciation increases the value of foreign assets in Australian dollar terms
can someone please explain what they mean.
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-an appreciation decreases the interest servicing cost on foreign debt
-an appreciation will reduce the $A value of foreign debt that has been borrowed
-a depreciation increases the $A value of foreign income earned on Australia's investment
-a depreciation increases the value of foreign assets in Australian dollar terms
can someone please explain what they mean.
Thank you