Concerning a currency depreciation, the elasticity approach and the absorption approach are theories that deal with the impact of the depreciation on
A) exports and imports of goods and services.
B) the domestic supply and demand of money.
C) capital inflows and capital outflows.
D) rates of inflation and rates of deflation.

Question

Quizplus · Accepted Answer

The elasticity approach and absorption approach deal with the impact of currency depreciation on exports and imports of goods and services.

Concerning a Currency Depreciation, the Elasticity Approach and the Absorption