According to the Marshall-Lerner Condition, a Currency Devaluation Will Be

question 45

Multiple Choice

According to the Marshall-Lerner condition, a currency devaluation will be successful in improving a country's trade balance if the

• A) sum of the elasticities of supply is more than 1.
• B) sum of the elasticities of supply is less than 1.
• C) sum of the elasticities of demand is more than 1.
• D) sum of the elasticities of demand is less than 1.

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Definitions:

Research Literature

Scholarly and peer-reviewed articles, books, and other publications that summarize current research findings in various domains of study.

Modest Support

Minimal but meaningful assistance or backing provided to an individual or initiative, typically sufficient to achieve a particular purpose or goal.

Amphetamines

Drugs that have effects on the body similar to those of the naturally occurring hormone adrenaline. Originally developed as a nasal decongestant and asthma treatment in the 1930s. In addition to shrinking mucous membranes and constricting blood vessels, they increase alertness and concentration. Chronic amphetamine use is associated with feelings of fatigue and sadness, as well as periods of social withdrawal and intense anger.

Decongestant

A medication used to relieve nasal congestion in the upper respiratory tract.