The Marshall-Lerner Condition Indicates That If the Sum of Absolute

question 36

True/False

The Marshall-Lerner condition indicates that if the sum of absolute values of the elasticities of demand for imports and demand for exports is greater than one,a currency devaluation will fail to improve the balance of trade.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Quick Ratio

A financial metric that measures a company’s ability to meet its short-term obligations with its most liquid assets.

Marketable Securities

These are liquid financial instruments that can be quickly converted into cash at a reasonable price, such as stocks or bonds.

Current Ratio

It's a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year.