If a Home Country Depreciates or Devalues Its Currency by 10

Multiple Choice

If a home country depreciates or devalues its currency by 10 percent, and if there is "complete pass-through" as well as horizontal supply curves of exports and imports, then The price of the country's exports in terms of foreign currency will __________ and the Price of the country's imports in terms of home currency will __________.

A) not change; rise by 10 percent
B) not change; not change
C) fall by 10 percent; rise by 10 percent
D) fall by 10 percent; not change