Recent evidence regarding the exchange-rate pass-through effect in the U.S. reflects a declining trend. How can this be explained?
What will be an ideal response?
There is evidence that the exchange-rate pass-through effect to import prices has been declining in developing economies, particularly for the U.S. One explanation offered for this trend is that the share of imports with prices more sensitive to exchange rate changes (such as food and beverages) has been declining. Also important is the fact that foreign exporters are increasingly "pricing to market," where they adjust their export prices to minimize the impact on U.S. import prices as exchange rates change.
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Briefly discuss the differences between men and women with respect to these four characteristics.
In the above table, if the market is perfectly competitive and unregulated, the equilibrium output will be
A) 1,000 units. B) 2,000 units. C) 3,000 units. D) 4,000 units.
Suppose you borrow $1,000 from your bank to pay for a bike. This is an example of
A) direct financing. B) indirect financing. C) moral hazard. D) transaction costs.
Discretionary fiscal policy
A. is the use of the money supply to maintain stable prices. B. is the purchase and sale of Treasury securities to influence economic growth and inflation. C. is the use of regulation to influence economic growth and inflation. D. is the use of government spending and tax policies to influence economic growth and inflation.