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Exchange rates

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Question 4

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 ImportsPrice 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

Exchange rates Questions

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