2) Suppose a country devalues its currency. If the country's demand for imports is the price increase resulting from the devaluation results in a relatively small decrease in the volume of imports, causing to total import expenditures to increase. a. relatively inelastic b. relatively elastic c. unit elastic d. perfectly elastic

Economics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model
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2) Suppose a country devalues its currency. If the country's demand for imports is
resulting from the devaluation results in a relatively small decrease in the volume of imports, causing to
total import expenditures to increase.
, the price increase
a. relatively inelastic
b. relatively elastic
c. unit elastic
d. perfectly elastic
Transcribed Image Text:2) Suppose a country devalues its currency. If the country's demand for imports is resulting from the devaluation results in a relatively small decrease in the volume of imports, causing to total import expenditures to increase. , the price increase a. relatively inelastic b. relatively elastic c. unit elastic d. perfectly elastic
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