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Exchange Rate Pass Through measures how responsive firm prices are to fluctuations in exchange rates. These firms can manipulate their prices in response to adverse

Exchange Rate Pass Through measures how responsive firm prices are to fluctuations in exchange rates. These firms can manipulate their prices in response to adverse exchange rate movements because they _____.

a)operate in countries with flexible exchange rate regimes

b)have sufficient market power and profit margins

c) are clustered together with similar

d)firms operate in countries with limited corporate regulations

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