What term describes how quickly domestic and foreign prices respond to a devaluation in the short term?

Exchange-Rate Adjustments And The Balance of MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Exchange-Rate Adjustments And The Balance of

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Exchange-Rate Adjustments And The Balance ofeconomics-mcqs › exchange-rate-adjustments-and-the-balance-of
Published
1 Jun 2019
Last updated
28 May 2026

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Explanation

Pass through refers to the extent and speed at which changes in exchange rates affect domestic and foreign prices following a devaluation. Other options like absorption, adjustment process, and currency contract duration relate to different economic concepts.

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