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Exchange rates

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Question 2

According to the Marshall-Lerner condition, which of the following countries' balance of trade will improve following a depreciation of its currency?

CountryPrice Elasticity of Demand for Exports (PEDxPED_xPEDx​)Price Elasticity of Demand for Imports (PEDmPED_mPEDm​)
Arcadia-0.35-0.55
Belgravia-0.45-0.65
Cantonia-0.25-0.70
Danubia-0.40-0.60

Arcadia

Belgravia

Cantonia

Danubia

Exchange rates Questions

  1. A Level
  2. /Economics
  3. /Exchange rates