Full pass-through means that a 10°/o rise in the overseas price of an imported good leads to:
a. a 100% rise in the domestic price.
b. a greater-than 10% rise in the domestic price.
c. a 10% rise in the domestic price.
d. a less-than 10% rise in the domestic price.
Ans: c. a 10% rise in the domestic price.
Economics
You might also like to view...
Capital shallowing occurs because old capital depreciates, or becomes completely obsolete with the passage of time
a. True b. False Indicate whether the statement is true or false
Economics
Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 4 percent, then the bank can make a maximum loan of
A) $0. B) $4 million. C) $6 million. D) $10 million.
Economics