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Suppose that you work for a Kentucky Bourbon distillery and you export to the European Union. The price of the bourbon is 45EUR and the

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Suppose that you work for a Kentucky Bourbon distillery and you export to the European Union. The price of the bourbon is 45EUR and the cost is 20USD. What will happen to your profits if the USD appreciates? Assume that the pass-through rate for Bourbon is 45%. (your company is American and your home currency is USD). Fall Remain unchamged Increase Not enough information

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