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Do you as a consumer think that there is much of a time lag between when a price change of an imported good in your
Do you as a consumer think that there is much of a time lag between when a price change of an imported good in your market basket occurs and when you react (if at all) to this price change? If so, why, if not why not? If your reaction time is shared is shared by all consumers of imports, what implication would there be for the impact of change in currency values on the current account balance in the short run? Explain.
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