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Scenario: Color-Me-Green, Inc. Color-Me-Green, Inc., a U.S.-Based Clothing Merchant, Has Started Doing Business

Question 130

Multiple Choice

Scenario: Color-Me-Green, Inc.
Color-Me-Green, Inc., a U.S.-based clothing merchant, has started doing business internationally. Having subsidiaries in several countries at year-end, the company must integrate the financial information from all its subsidiaries into the U.S. home office.
-If country A has a very high inflation rate, it would necessarily ________.


A) enhance import values thereby helping Color-Me-Green's sales
B) lower the prices of goods and services in the country
C) diminish people's purchasing power, thereby hurting Color-Me-Green's sales
D) cut real interest rates

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