Concerning a Currency Depreciation, the Elasticity Approach and the Absorption

question 54

Multiple Choice

Concerning a currency depreciation, the elasticity approach and the absorption approach are theories that deal with the impact of the depreciation on

• A) exports and imports of goods and services.
• B) the domestic supply and demand of money.
• C) capital inflows and capital outflows.
• D) rates of inflation and rates of deflation.