Which of the following is not true regarding economic exposure? a. The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected. b. In general, depreciation of the firm's local currency causes a decrease in both cash inflows and outflows. c. Even purely domestic firms can be affected by economic exposure. d. The degree of economic exposure will likely be much greater for a firm involved in international business than for a purely domestic firm.
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