According to the Marshall-Lerner Approach,a Currency Depreciation Will Best Lead

question 78

Multiple Choice

According to the Marshall-Lerner approach,a currency depreciation will best lead to an improvement on the home country's trade balance when the:

• A) Home demand for imports is inelastic--foreign export demand is inelastic
• B) Home demand for imports is inelastic--foreign export demand is elastic
• C) Home demand for imports is elastic--foreign export demand is inelastic
• D) Home demand for imports is elastic--foreign export demand is elastic

---

Definitions:

Post-closing Trial Balance

A list of all accounts and their balances after closing entries have been made, ensuring that debits equal credits.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered on credit.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.