Laketown Co. has some expenses and revenue in euros. If its expenses are more sensitive to exchange rate movements than revenue, it could reduce economic exposure by ____. If its revenues are more sensitive than expenses, it could reduce economic exposure by ____.
A) decreasing foreign revenues; decreasing foreign expenses
B) decreasing foreign revenues; increasing foreign expenses
C) increasing foreign revenues; decreasing foreign revenues
D) decreasing foreign expenses; increasing foreign revenues
Correct Answer:
Verified
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