If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?

Related Mcqs:

The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ?

A. J Curve effect B. Marshall Lerner effect C. absorption effect D. pass through effect...

Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

A. the absorption approaches B. the Marshall Lerner approach C. the monetary approach D. the elasticities approach...

The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ?

A. relative price B. elasticity C. J Curve D. Pass through...

The shorter the ______ pass through period the ______ the desirable BOT effects of evaluation on quantities traded will appear ?

A. sooner B. longer C. bigger D. smaller...

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...