Suppose That a 5% Depreciation of the U

Multiple Choice

Suppose that a 5% depreciation of the U.S. dollar raises the dollar price of a U.S. import Good by 5%. This situation would be characterized as a situation of __________ "pass- Through" (or "exchange-rate pass-through") , and U.S. consumers of the imported good Would spend a larger dollar amount on the imported good than they did before the Depreciation of the dollar if their demand for the good is __________.

A) complete; inelastic
B) complete; elastic
C) incomplete or partial; inelastic
D) incomplete or partial; elastic