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:

FIRO

A theory of interpersonal relations that explains how interpersonal relationships can be understood through three basic needs: inclusion, control, and affection.

Need For Inclusion

The inherent desire or drive within individuals to belong, be accepted, and feel a part of a group or community.

Social Anxiety

A form of anxiety that occurs in social situations, characterized by a fear of being negatively judged or evaluated by others.

Attachment Theory

A psychological theory that explores the importance of "attachment" in human development, particularly the bonds between children and their caregivers.