Assume the Marshall-Lerner Condition Holds

question 53

Multiple Choice

Assume the Marshall-Lerner condition holds.Which of the following will cause an increase in net exports?

• A)an increase in government spending
• B)an increase in investment
• C)a reduction in foreign output
• D)a reduction in the real exchange rate
• E) all of the above

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Definitions:

Warm

A relative term describing a moderately high temperature, often perceived as comfortable to humans.

Temperature Inversion

A meteorological condition where the temperature of the air increases with altitude, contrary to the norm, which can lead to pollution events and smog.

Leeward Side

The side of a mountain or hill sheltered from the wind, usually having a milder climate and receiving less precipitation than the windward side.

Thermal Inversion

A weather condition where a layer of warm air traps cold air and pollutants near the surface of the Earth, often leading to poor air quality.