Question
According to the Marshall-Lerner condition, currency devaluation will have no effect on a country`s trade balance if a. the sum of domestic and foreign elasticities
According to the Marshall-Lerner condition, currency devaluation will have no effect on a country`s trade balance if
a. the sum of domestic and foreign elasticities of demand for imports is greater than one.
b. the sum of domestic and foreign elasticities of demand for imports is less than one.
c. the sum of domestic and foreign elasticities of demand for imports is equal to one.
d. more information is needed to answer this question.
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
