Which of the following statements about exchange rate pass-through is NOT true? a. Exchange-rate pass-through demonstrates the elasticity of local-currency import prices with respect to the local-currency price of foreign currency. b. The increased competitiveness of international trade has led to the reduction of pass-through coefficient. c. Import prices in industries with low product differentiation and high demand elasticities are affected by exchange rate changes more than in industries with a high degree of product differentiation and low demand elasticities. d. The average pass-through coefficient of 0.5 means that if the U.S. dollar appreciates or depreciates by 1%, import prices of foreign products change, on average, by about 0.5%.
Which of the following statements about exchange rate pass-through is NOT true?
a. Exchange-rate pass-through demonstrates the elasticity of local-currency import prices with respect to the local-currency price of foreign currency.
b. The increased competitiveness of international trade has led to the reduction of pass-through coefficient.
c. Import prices in industries with low product differentiation and high
d. The average pass-through coefficient of 0.5 means that if the U.S. dollar appreciates or
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