When Considering the Change in Price of a Country's Imports

question 23

Multiple Choice

When considering the change in price of a country's imports when foreign currencies depreciate by 10 percent relative to the home country, the "elasticity of exchange rate pass-through" would be equal to

• A) 1.0 if there were no "pass-through."
• B) 1.0 if there were complete "pass-through."
• C) zero if there were complete "pass-through."
• D) 10 percent if there were complete "pass-through."

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Definitions:

Producers

Organisms, mainly plants and algae, that can produce their own food through the process of photosynthesis, serving as the base of the food chain.

Reproduction

The process in biology where offspring are generated from their progenitors.

Generation

A group of individuals born and living around the same time, typically considered to be about 20–30 years.

Development

The process through which an organism grows or progresses, often involving physical, psychological, or social changes.