eco 4713 exchange rate elasticity of exports

***Refer to the following information to answer questions 1 – 3.

1. (1 point) (1) Is the Marshall-Lerner condition satisfied in the short run in France? (1) Is the Marshall-Lerner condition satisfied in the long run in France?
2. (1 point) (1) Is the Marshall-Lerner condition satisfied in the short run in Japan? (2) Is the Marshall-Lerner condition satisfied in the long run in Japan?
3. (2 points) (1) Explain the J-curve effect. (2) Draw the J curve for France. Does the J curve show up in France? (3) Draw the J curve for Japan. Does the J curve show up in Japan?
4. (2 points) (1) Explain the exchange rate pass-through. (2) The exchange rate pass-through rate for the United States is 0.42, and the exchange rate pass-through rate for Japan is 0.8. If the exchange rate between the U.S. dollar and the Japanese yen has risen by 10% (say from ¥100 per dollar to ¥110 per dollar), what will happen to import prices in the United States and Japan, respectively?