2)The longer the "pass-through" period following a devaluation, the faster the desirable balance of trade effects of a devaluation will appear on quantities traded. True or False? Explain.

3)Assume the following to be true:

Exports contracts are denominatedin foreign currency ( yen)

mports contracts are denominated in foreign currency ( yen)

After the devaluation of US $ againstYen , What will happen to UStrade balance following a devaluation of the US $( in US $ value)