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:

Quadratic Formula

A formula used to find the solutions of a quadratic equation, given as \(x = \frac{-b \pm \sqrt{b^2-4ac}}{2a}\).

Adjacent Rectangular Corrals

A configuration of rectangular enclosures that share a common side, often used in farming or livestock management scenarios.

Enclosed Region

An area that is completely surrounded or bounded by a boundary, such as a shape or curve in geometry.

Discriminant

In algebra, the discriminant is a quantity expressed in terms of the coefficients of a polynomial equation that can determine the nature and number of the roots.