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Exchange rate pass-through may be defined as: the degree to which the prices of imported and exported goods change as a result of exchange rate changes. the bid/ask spread on currency exchange rate transactions. the practice by Great Britain of maintaining the relative strength of the currencies of the Commonwealth countries under the current floating exchange rate regime. the PPP of lesser-developed countries.

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Answer:

the degree to which the prices of imported and exported goods change as a result of exchange rate changes.

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User Aaron Sofaer
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