Four economies are currently experiencing a deficit on the current account of their balance of payments. Each economy's currency depreciates by 10% on the foreign exchange markets.
The table below shows the price elasticities of demand for exports (PEDXPED_XPEDX) and imports (PEDMPED_MPEDM) for each economy:
| Economy | Price elasticity of demand for exports (PEDXPED_XPEDX) | Price elasticity of demand for imports (PEDMPED_MPEDM) |
|---|---|---|
| Country W | -0.35 | -0.45 |
| Country X | -0.40 | -0.55 |
| Country Y | -0.45 | -0.65 |
| Country Z | -0.25 | -0.70 |
Which economy will successfully reduce its current account deficit as a result of the currency depreciation?
Country W
Country X
Country Y
Country Z