According to the Marshall-Lerner Condition, Currency Depreciation Has No Effect

question 96

Multiple Choice

According to the Marshall-Lerner condition, currency depreciation has no effect on a country's trade balance if the elasticity of demand for its exports plus the elasticity of demand for its imports equals

• A) 0.1.
• B) 0.5.
• C) 1.0.
• D) 2.0.

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Definitions:

Standardization

The process of developing and implementing technical standards to ensure consistency and compatibility in products, services, and processes.

Random Selection

A method of selecting a sample from a population in a way that gives every member of the population an equal chance of being chosen.

Representative Sample

A subset of a population that closely mirrors the characteristics of the overall population, used in research to draw conclusions about the population as a whole.

Population

a group of individuals of the same species living in the same geographic area at the same time, capable of interbreeding.