According to the Marshall-Lerner condition, which of the following countries' balance of trade will improve following a depreciation of its currency?
| Country | Price Elasticity of Demand for Imports | Price Elasticity of Demand for Exports |
|---|---|---|
| A | -0.4 | -0.5 |
| B | -0.2 | -0.6 |
| C | -0.6 | -0.5 |
| D | -0.3 | -0.3 |
Country A
Country B
Country C
Country D
30 exam-style questions on OCR A Level Economics Exchange rates. Each one has a worked solution and a mark scheme showing where the marks go.