Because of the J curve effect and partial currency pass through, a depreciation of the domestic currency tends to increase the size of a ?

Related Mcqs:

The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

A. pass through B. absorption C. adjustment mechanism D. currency contract period...

The balance of trade can only worsen if income ____ relative to absorption ?

A. increases B. decreases C. does not change D. None of the above...

According to the Marshall-Lerner condition if a country’s currency depreciates its trade balance will worsen if ?

A. elasticity of demand for exports = 0.9; elasticity of demand for imports = 0.4 B. elasticity of demand for exports = 0.7; elasticity of demand for imports = 0.3 C. elasticity of demand for exports = 0.5; elasticity of demand for imports = 0.7 D. elasticity of demand for exports = 0.3; elasticity of … According to the Marshall-Lerner condition if a country’s currency depreciates its trade balance will worsen if ?Read More...

If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?

A. shorten the amount of time in which the depreciation leads to smaller trade deficit B. shorten the amount of time in which the depreciation leads to smaller trade surplus C. lengthen the amount of time in which the depreciation leads to smaller trade deficit D. lengthen the amount of time in which the depreciation … If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?Read...

Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?

A. appreciation in the value of both currencies B. depreciation in the value of both currencies C. appreciation in the value of the yen against the mark D. depreciation in the value of the yen against the mark...