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5. (10 points) Suppose that the price of a Toyota model exported from Japan to the United States is $36,000. The spot exchange rate at

5. (10 points) Suppose that the price of a Toyota model exported from Japan to the United States is $36,000. The spot exchange rate at the beginning of the year was 113.5/$. During the year the Japanese yen appreciated at a steady pace, and by the end of the year the exchange rate was 111.0/$. As a result, Toyota raised the price of the vehicle in the U.S. to $36,600. What was the pass-through rate that was applied?

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