The proportion of an exchange rate change that is reflected in export and import price changes is called:
A)J-curve effect
B)Pass-through
C)Marshall-Lerner condition
D)Unstable foreign exchange market

Question

Quizplus · Accepted Answer

The proportion of an exchange rate change that is reflected in export and import price changes is called pass-through. It refers to how much of a currency appreciation or depreciation is passed on to changes in the prices of goods and services traded between countries.

The Proportion of an Exchange Rate Change That Is Reflected