The shorter the ______ pass through period the ______ the desirable BOT effects of evaluation on quantities traded will appear ?
Correct answer: A. sooner
- A. sooner
- B. longer
- C. bigger
- D. smaller
Explanation
A shorter pass-through period means prices respond more quickly to the currency change, so the desirable balance-of-trade effects appear sooner. The question’s wording is compressed, but option a expresses this relationship.
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