For This Question,assume the Marshal-Lerner Condition Holds

question 2

Multiple Choice

For this question,assume the Marshal-Lerner condition holds.Which of the following would occur as a result of an increase in the real exchange rate?

• A)an improvement of the trade balance
• B)a reduction in the quantity of imports
• C)an increase in domestic output
• D)all of the above
• E) none of the above

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