What will a U.S. corporation do if it believes that the dollar will continue to appreciate when it changes foreign earnings back into dollars?
What will be an ideal response?
The corporation would purchase a futures contract or hedge that allows it to lock into an exchange rate beforehand, so that the company will not lose profits from a devalued currency.
Economics
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From 2006 to 2008, ______ fell by $350 billion.
a. mortgage-backed security valuations b. individual foreclosures c. subprime mortgage originations d. housing construction
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