Which Approach Considers the Extent by Which Foreign and Domestic

question 52

Multiple Choice

Which approach considers the extent by which foreign and domestic prices adjust to a change in the exchange rate in the short run?

• A) the monetary approach
• B) the absorption approach
• C) the expenditure approach
• D) the pass-through approach

---

Definitions:

Outer Space Treaty

An international agreement that forms the framework for national space law, prohibiting the placement of nuclear weapons in space and limiting the use of celestial bodies to peaceful purposes.

Principle of Comity

A doctrine in international law where countries mutually recognize and enforce each other's laws and judicial decisions out of respect, rather than obligation.

Act of State Doctrine

A principle in international law that allows a country to disregard foreign judgments that violate its own nation's sovereignty.

Space Resources

Natural materials found outside of Earth's atmosphere that can be extracted and utilized, such as water ice on the moon or minerals on asteroids.