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Depreciation of the euro relative to the U.S. dollar will cause a U.S.-based multinational firm's reported equity (from the consolidated balance sheet) to ____. If

Depreciation of the euro relative to the U.S. dollar will cause a U.S.-based multinational firm's reported equity (from the consolidated balance sheet) to ____. If a firm desired to protect against this possibility, it could ____ euros forward in the foreign exchange market.

increase; purchase

increase; sell

be reduced; sell

be reduced;purchase

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