Depreciation of the euro relative to the U.S. dollar will cause a U.S.-based multinational firms euro-based reported earnings (from the consolidated income statement) to _______. If a firm desired to protect against this possibility, it could stabilize its reported earnings by _______ euros forward in the foreign exchange market.

A) be reduced; purchasing B) be reduced; selling C) increase; selling D) increase; purchasing E) None of the above