Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?

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 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...

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...