According to the Marshall-Lerner Condition, a Currency Depreciation Will Best

question 62

Multiple Choice

According to the Marshall-Lerner condition, a currency depreciation will best lead to an improvement on the home country's trade balance when the

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

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Definitions:

Strong and Broad

Typically refers to the characteristic appearance of certain signals in spectroscopy, indicating a large distribution of energy levels or interactions.

IR Absorption

The process where a molecule absorbs infrared radiation, leading to vibrational transitions, used in spectroscopy to identify chemical compounds.

Intense IR Absorption

Refers to the strong absorption of infrared light by a molecule, typically due to specific bond vibrations, useful in identifying functional groups.

C-H Stretch

Refers to the vibration observed in infrared spectroscopy representing the stretching of carbon-hydrogen bonds.