The ______ refers to the extent to which changing currency values result in changes in import and export prices.
A) time path of devaluation
B) Marshall-Lerner effect
C) J-curve effect
D) pass-through effect

Question

Quizplus · Accepted Answer

The pass-through effect refers to the extent to which changing currency values result in changes in import and export prices. The other options are not directly related to this concept. The time path of devaluation refers to the pattern of currency depreciation over time, while the Marshall-Lerner effect and J-curve effect are related to the impact of changes in exchange rates on a country's trade balance.

The ______ Refers to the Extent to Which Changing Currency