Zeta Corporation is a Philippine Export Company. It sells its goods to the US. Assuming that the BSP prints more Philippine peso bills, how will the sales of Zetabe affected?  A. The decrease in money supply will increase the value of each peso, require less peso to get one USD, hence Zeta's sales in peso will decrease. B. The increase in money supply will increase the value of each peso, require less peso to get one USD, hence Zeta's sales in peso will decrease. C. The decrease in money supply will lower the value of each peso, require more peso to get one USD, hence Zeta's sales in peso will increase. D. The increase in money supply will lower the value of each peso, require more

Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter19: The International Monetary System: Order Or Disorder
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Zeta Corporation is a Philippine Export
Company. It sells its goods to the US.
Assuming that the BSP prints more
Philippine peso bills, how will the
sales of Zetabe affected? 

A. The decrease in money supply will increase the value of each peso, require less peso to get one USD, hence Zeta's sales in peso will decrease.
B. The increase in money supply will increase the value of each peso, require less peso to get one USD, hence Zeta's sales in peso will decrease.
C. The decrease in money supply will lower the value of each peso, require more peso to get one USD, hence Zeta's sales in peso will increase.
D. The increase in money supply will lower the value of each peso, require more peso to get one USD, hence Zeta's sales in peso will increase.

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