The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ? A. relative price B. elasticityC. J Curve D. Pass through
Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ? A. the absorption approaches B.…
The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ? A. J Curve effect B. Marshall Lerner effect C. absorption effectD. pass through effect
The shift toward imperfectly competitive markets in domestic and international trade the concept of ? A. official exchange ratesB. complete currency pass through C. exchange arbitrage D. trade adjustment assistance
Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ? A. home demand for imports is inelastic and foreign export demand is inelastic B. home demand for imports is…
Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ? A. partial currency pass through B. complete…