When Increase in the Domestic Price of an Imported Commodity

question 21

Multiple Choice

When increase in the domestic price of an imported commodity is less than the depreciation of the domestic currency it is commonly referred to as

• A) a Marshall-Lerner adjustment
• B) a purchasing power parity adjustment
• C) a currency pass-through
• D) a J-curve effect

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.