Incomplete Exchange Rate Pass-Through Refers to

question 20

Multiple Choice

Incomplete exchange rate pass-through refers to

• A) the rates at which domestic suppliers decrease its prices to accommodate foreign exchange volatility.
• B) the degree of un-proportional change in prices of imports and exports relative to periodic changes in the exchange rate.
• C) the fee charged by foreign exchange dealer when the exporter cancels the transaction.
• D) the rate at which exporters increase prices when their home currency depreciates.

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Definitions:

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