Economics · International Finance
The Marshall-Lerner condition states that devaluation will improve the current account trade balance only if the sum of the foreign price elasticity of demand for exports and the home country's price elasticity of demand for imports is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Less than unity
- 2Greater than unity✓
- 3Equal to unity
- 4Zero
Correct answer
Greater than unity
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