For This Question,assume That the Marshall-Lerner Condition Does NOT Hold

question 66

Multiple Choice

For this question,assume that the Marshall-Lerner condition does NOT hold.A reduction in the real exchange rate will tend to cause which of the following to occur?

• A)a reduction in NX and a reduction in foreign output (Y*)
• B)a reduction in NX and an increase in domestic output (Y)
• C)an increase in NX and a reduction in Y
• D)an increase in NX and an increase in Y
• E)none of the above

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Definitions:

Text Acceptance

Acceptance of an offer or agreement through written text, often facilitated by digital means such as SMS or email.

Auction With Reserve

An auction in which the seller reserves the right to accept or reject the highest bid if it falls below a predetermined amount.

Contract

An agreement between two or more parties that is enforceable by law.

Condition Precedent

A contractual term that requires a specific event or action to occur before a contract becomes binding.