When considering the change in price of a country's imports when foreign currencies depreciate by 10 percent relative to the home country, the "elasticity of exchange rate pass-through" would be equal to

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The "elasticity of exchange rate pass-through" refers to the extent to which the change in the exchange rate affects the prices of imports. If there is complete "pass-through," it means that a 10 percent depreciation in foreign currencies relative to the home country's currency would lead to a 10 percent change in the price of imports, indicating an elasticity of 1.0.

When Considering the Change in Price of a Country's Imports