According to the elasticity approach, there are three potential outcomes of a currency depreciation. Pair each outcome with the set of conditions which will cause it. Each pair is worth 1 point, which you will receive if you correctly match the outcome with the conditions. Order does not matter. 1: *Lags cause import and export prices to change prior to quantities. *Elasticities of demand for imports plus exports is greater than 1. *Exchange-rate pass-through is high. 2: *Lags cause import and export prices to change prior to quantities. *Elasticities of demand for imports plus exports is greater than 1. *Exchange-rate pass-through is low. 3: *Lags cause import and export prices to change prior to quantities. *Elasticities of demand for imports plus exports is less than 1. *Exchange-rate pass-through is high.Matching