If Depreciation of a Home Currency Occurs, Foreign Exporters to the Home

Multiple Choice

If depreciation of a home currency occurs, foreign exporters to the home country could offset some of the impact of the depreciation by __________ the price/cost ratio on goods sent to the home country; such a change in the price/cost ratio would mean that there was _________ "pass-through" of the exchange rate change to foreign export prices.

A) decreasing; complete
B) decreasing; less-than-complete
C) increasing; complete
D) increasing; less-than-complete