Author Question: If a 10 currency appreciation results in a 10 decrease in the price of imported goods, then this is ... (Read 94 times)

ericka1

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If a 10 currency appreciation results in a 10 decrease in the price of imported goods, then this is called
 
  A) a complete pass-through.
  B) the Marshall Lerner condition.
  C) a partial pass-through.
  D) import inflation.

Question 2

The depreciation of a currency may cause an initial worsening of the balance of payments before it improves. This is called the
 
  A) J-curve effect.
  B) time value of money.
  C) Marshall Lerner condition.
  D) shock effect.



Jayson

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Answer to Question 1

A

Answer to Question 2

A



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