The Marshall-Lerner Condition Suggests That Depreciation of the Franc Leads

question 53

Multiple Choice

The Marshall-Lerner condition suggests that depreciation of the franc leads to a worsening of France's trade account if the:

• A) Elasticity of demand for French exports is 0.4 while the French elasticity of demand for imports is 0.2
• B) Elasticity of demand for French exports is 0.6 while the French elasticity of demand for imports is 0.4
• C) Elasticity of demand for French exports is 0.5 while the French elasticity of demand for imports is 0.7
• D) Elasticity of demand for French exports is 0.6 while the French elasticity of demand for imports is 0.7

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Definitions:

Noisy Breathing

A breathing pattern that is loud, harsh, or wheezing, often indicating a blockage or obstruction in the airways.

Manometer

A device used to measure the pressure of gases or liquids, typically by observing the height of a column of liquid in a tube.

Inflatable Cuff

A device, often part of a blood pressure monitor, that is wrapped around a limb and inflated to restrict blood flow for measurement purposes.

Orthostatic Hypotension

A situation in which blood pressure becomes low and the pulse increases when a patient is moved from a lying to standing position; also known as postural hypotension.