According to the Marshall-Lerner Condition, Currency Depreciation Has No Effect

question 96

Multiple Choice

According to the Marshall-Lerner condition, currency depreciation has no effect on a country's trade balance if the elasticity of demand for its exports plus the elasticity of demand for its imports equals

• A) 0.1.
• B) 0.5.
• C) 1.0.
• D) 2.0.

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Definitions:

Cash Payments Journal

A financial journal that records all cash payments made by a business, including expenses, asset purchases, and debt payments.

Accounts Receivable Subsidiary Ledger

A detailed ledger that contains individual customer accounts, tracking the amounts owed by each customer to a business.

General Ledger

A comprehensive record of all financial transactions, organized by account, used to compile financial statements.

Control Accounts

General ledger accounts that summarize the details of transactions recorded in subsidiary ledgers.