An Exchange Rate Pass-Through Describes the Way Managers of the Firm

question 15

Multiple Choice

An exchange rate pass-through describes the way managers of the firm choose to respond with their relative prices to changes in the ________.

• A) nominal exchange rate
• B) real exchange rate
• C) tariff rates
• D) real appreciation of the nominal exchange rates

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Definitions:

Primacy Effect

The cognitive phenomenon where individuals are more likely to remember and give more weight to information that is presented first in a series.

Matching Hypothesis

The notion that people tend to have lovers or spouses who are similar to themselves in physical attractiveness and other assets.

Conformity

is the act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.

Social Facilitation

The phenomenon that people tend to perform simple tasks better, or complex tasks worse, in the presence of others due to increased arousal.