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

Choose the correct answer

Explanation

The correct answer is pass-through, which refers to the extent to which exchange rate changes affect domestic and foreign prices following a devaluation. Absorption, adjustment process, and currency contract duration are related concepts but do not specifically describe this price response.

What term describes how quickly domestic and foreign… — Exchange-Rate Adjustments And The Balance of | PakQuizHub