The Percent by Which Import Prices Rise When the Home

question 57

Multiple Choice

The percent by which import prices rise when the home currency depreciates by 1% is the degree of

• A) pass-forward from exchange rates to import prices.
• B) pass-through from exchange rates to import prices.
• C) pass-on from exchange rates to import prices.
• D) roll-forward from exchange rates to import prices.
• E) pass-beyond from exchange rates to import prices.

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Definitions:

Nonmonetary Productive Assets

Physical or tangible assets that do not have a fixed monetary value but contribute to the production capacity of a business.

Boot

Additional cash or property added to an exchange or trade to make the value of the traded goods equal, commonly used in real estate and barter transactions.

Gain

An increase in wealth or resources, often resulting from a favorable difference between the purchase price and the selling price of assets.

Professional Contract

A written agreement detailing the terms of engagement between a professional service provider and their client or employer.