Question
Consider an open economy, in which a real depreciation was observed in period zero (t0). In addition, the following information is available on the behavior
Consider an open economy, in which a real depreciation was observed in period zero (t0). In addition, the following information is available on the behavior of the trade balance (NX) over time:
NX in period zero (t0): 2.9 million dollars
NX in period two (t2): 2.7 million dollars
NX in period four (t4): 2.9 million dollars
NX in period six (t6): 3.2 million dollars
NX in period eight (t8): 3.4 million dollars Indicate the correct answer:
Answer Choice Group
In period four (t4) the Marshall-Lerner condition was met.
In period two (t2) the Marshall-Lerner condition was met.
In period eight (t8) the J curve ceased to be fulfilled.
In period six (t6) the Marshall-Lerner condition was met.
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