The Marshall-Lerner Condition Holds That a Country's Current Account Balance

question 20

Multiple Choice

The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________.

• A)improve;depreciation;sum of the price elasticities of export and import demand exceeds 1
• B)worsen;depreciation;sum of the price elasticities of export and import demand exceeds 1
• C)improve;appreciation;sum of the price elasticities of export and import demand exceeds 1
• D)improve;appreciation;sum of the price elasticities of export and import demand exceeds 0
• E)worsen;depreciation;sum of the price elasticities of export and import demand exceeds 0

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Definitions:

Short-Term Memory

A cognitive system that temporarily holds a limited amount of information in an accessible state for use in ongoing tasks.

Coded

Transformed into a systematic form (often numerical or symbolic) to classify and facilitate the analysis of data.

Working Memory

A cognitive system responsible for temporarily holding and processing information relevant to current tasks or activities.

Episodic Buffer

A component of the working memory model that integrates information from different sources into a coherent episode.