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due to reduced Question (117) Assume that your firm is an importer of Mexican chairs denominated in pesos. Your competition is due mainly U.S.

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due to reduced Question (117) Assume that your firm is an importer of Mexican chairs denominated in pesos. Your competition is due mainly U.S. producers of chairs. You wish to assess the relationship between the percentage change in the firm's stock price (SP+) and the percentage change in the peso's value relative to the dollar (PESO). SPt is the dependent variable. You apply the regression model to an earlier subperiod and a more recent subperiod. In the recent subperiod, you increased your importing volume. You should expect that the in the first subperiod and regression coefficient in the PESO variable would be subperiod. in the second Costs relative To revenues. a. negative; positive b. positive; positive c. positive; negative d. negative; negative

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