The ________ analysis considers the ability of domestic and foreign prices to adjust to devaluation in the short run.
A)pass-through
B)absorption
C)adjustment mechanism
D)currency contract period

Question

Quizplus · Accepted Answer

The concept described in the question is that of pass-through analysis, which examines how much of a devaluation in a country's currency is passed on to domestic prices and how much is passed on to foreign prices in the short run. The other options are not relevant to this concept.

The ________ Analysis Considers the Ability of Domestic and Foreign