The extent to which a change in the exchange rate leads to changes in import and export prices is known as the?

Academy of PakistanTest & Learning

804Active Users

Academy of PakistanTest & Learning

804Active Users

216EconomicsMedium

AJ Curve effect

Bpass through effect

Cabsorption effect

DMarshall Lerner effect

Correct answer

B. pass through effect

Explanation

The correct answer is pass through effect.

The extent to which a change in the exchange rate leads to changes in import and export prices is known as the? - Answer and Explanation | Academy of Pakistan