Which of the Following Conditions Leads to the Greatest Exchange

question 17

Multiple Choice

Which of the following conditions leads to the greatest exchange rate pass-through?

• A) pricing to market by exporters
• B) a small open economy
• C) fixed exchange rates
• D) a wide assortment of import-competing domestic goods
• E) "dollarization" and currency unions, in which different nations adopt the same currency

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Definitions:

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