Economics · International Trade Theories
According to the Marshall-Lerner condition, for a foreign exchange market to be stable (or for devaluation to improve the trade balance), the sum of the price elasticities of demand for imports and exports must be:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1more than 1✓
- 2equal to 1
- 3equal to zero
- 4less than 1
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more than 1
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