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:

Experimental

Pertaining to or based on experiments, which are structured and controlled tests or investigations to establish or test a hypothesis.

Placebo

An inert or non-effective substance or treatment given to a participant in a study, used to contrast with an active substance to test its efficacy.

Test

An assessment or examination intended to measure a test-taker's knowledge, skill, aptitude, physical fitness, or classification in many other topics.

Independent Variable

The variable in an experiment that is manipulated to observe its effect on the dependent variable.