Assume the Marshall-Lerner Condition Holds

question 70

Multiple Choice

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

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

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Definitions:

Composition

The process or result of combining two or more functions by applying one function to the result of the other.

\(5x+9\)

An algebraic expression representing a linear function.

\(x-5\)

An algebraic expression representing a value five less than the variable x.

Transformation

A process by which a shape is changed through operations such as rotation, reflection, translation, or resizing, altering its position or size but not its fundamental characteristics.