4498EconomicsMedium
Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by?
Apartial currency pass through
Bcomplete J curve effect
Ccomplete currency pass through
Dpartial J curve effect
Correct answer
A. partial currency pass through
Explanation
The correct answer is partial currency pass through.