Economics · International Trade
The Marshall-Lerner condition states that a currency devaluation or real depreciation will improve the trade balance if the sum of absolute price elasticities of demand for exports and imports is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Greater than zero
- 2Greater than unity (1)✓
- 3Greater than two
- 4Less than unity (1)
Correct answer
Greater than unity (1)
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