According to the Marshall-Lerner condition, when a country's currency depreciates in real terms its trade balance wil improve if Your answer: O elasticity of demand for exports = 0.9; elasticity of demand for imports = -0.4 O elasticity of demand for exports = -0.8; elasticity of demand for imports = -0.3 O elasticity of demand for exports = 0.5; elasticity of demand for imports =- 0.2 O elasticity of demand for exports = 0.3; elasticity of demand for imports = -0.5

According to the Marshall-Lerner condition, when a country's currency depreciates in real terms its trade balance wil improve if Your answer: O elasticity of demand for exports = 0.9; elasticity of demand for imports = -0.4 O elasticity of demand for exports = -0.8; elasticity of demand for imports = -0.3 O elasticity of demand for exports = 0.5; elasticity of demand for imports =- 0.2 O elasticity of demand for exports = 0.3; elasticity of demand for imports = -0.5

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 21SCQ: Explain briefly whether each of the following would be more likely to lead to a higher level of...

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