Economics · International Economics
According to the Marshall-Lerner condition, a currency depreciation will improve the trade balance if the:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Sum of absolute values of export and import price elasticities exceeds unity✓
- 2Export volume increases more than import volume
- 3Import price elasticity exceeds unity
- 4Export price elasticity exceeds import price elasticity
Correct answer
Sum of absolute values of export and import price elasticities exceeds unity
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