A German product that is relatively price elastic is likely to demonstrate a low degree of...

A German product that is relatively price elastic is likely to demonstrate a low degree of exchange-rate pass through.

Group of answer choices

True

False

Solutions

Expert Solution

Answer : False

Explanation :

As the product is price elastic, means as the price increase demand will fall and vice-versa. So due to increase/decrease of exchange rate when price change, it has high degree of exchange rate pass through.

jeff jeffy answered 2 years ago

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