According to the Marshall-Lerner Condition, a Currency Depreciation Is Least

question 77

Multiple Choice

According to the Marshall-Lerner condition, a currency depreciation is least likely to lead to an improvement in the home country's trade balance when

• A) home demand for imports is inelastic and foreign export demand is inelastic.
• B) home demand for imports is elastic and foreign export demand is inelastic.
• C) home demand for imports is inelastic and foreign export demand is elastic.
• D) home demand for imports is elastic and foreign export demand is elastic.

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Definitions:

Parietal Pericardium

The outer fibrous layer of the pericardium, which surrounds the heart and roots of its major blood vessels.

Lobes

Divisions or sections of an organ separated by fissures or grooves, commonly referred to in the brain, lungs, and liver.

Internal Nares

Openings inside the nose that connect the nasal cavity to the back of the throat.

Choanae

The internal nostrils located at the back of the nasal cavity in vertebrates, connecting the nasal passages to the throat.