Solved

Suppose a Country Devalues Its Currency

Question 72

Multiple Choice

Suppose a country devalues its currency.If the country's demand for imports is ______, the price increase resulting from the devaluation results in a relatively small decrease in the volume of imports, causing total import expenditures to increase.


A) perfectly elastic
B) relatively elastic
C) unit elastic
D) relatively inelastic

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q67: One of the lags that occurs between

Q68: The time period that it takes for

Q69: In the early 1990s, the yen sharply

Q70: American citizens planning a vacation abroad would

Q71: The J-curve effect implies that in the

Q73: The shorter the currency pass-through period, the

Q74: The Marshall-Lerner condition suggests that depreciation of

Q75: The Marshall-Lerner condition illustrates<br>A) the price effects

Q76: The Marshall-Lerner condition suggests that if the

Q77: According to the Marshall-Lerner condition, a currency