Full Pass-Through Means That a 10% Rise in the Overseas

question 45

Multiple Choice

Full pass-through means that a 10% rise in the overseas price of an imported good leads to:

• A) a 100% rise in the domestic price.
• B) a greater than 10% rise in the domestic price.
• C) a 10% rise in the domestic price.
• D) a less than 10% rise in the domestic price.

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