If a 10 currency appreciation results in a 10 decrease in the ...

[ericka1]

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]

Answer to Question 1

A

Answer to Question 2

A