Multiple Choice
Which one of the following would NOT be an appropriate response for a Eurozone exporter to appreciation of the euro?
A) raise the foreign currency price if the euro appreciation was expected to be temporary and the cost of regaining market share was minimal
B) move some production offshore if the appreciation were expected to persist for an extended period
C) keep the foreign currency price constant if demand is quite elastic
D) lower the foreign currency price if demand is inelastic for the product
Correct Answer:
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