Multiple Choice
Empirical evidence regarding the effects of currency devaluation on the balance of trade indicates that
A) complete exchange-rate pass-through generally occurs.
B) partial exchange-rate pass-through generally occurs.
C) currency devaluations always improve the trade balance in the short run.
D) currency devaluations always worsen the trade balance in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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