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The Appropriate Response for a U

Question 22

Multiple Choice

The appropriate response for a U.S.exporter to depreciation of the dollar would be to


A) raise the foreign currency price if the dollar depreciation was expected to be temporary and the cost of losing market share was minimal
B) move some production offshore if the depreciation were expected to persist for an extended period
C) lower the foreign currency price constant if demand is quite inelastic
D) set up a netting center in the home country

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