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Define the Marshall-Lerner condition. What are the likely effects of devaluation during a recession when supply elasticities are high? How is the IS curve altered

  1. Define the Marshall-Lerner condition. What are the likely effects of devaluation during a recession when supply elasticities are high?
  2. How is the IS curve altered by introducing international trade? What is the effect on IS curve of a rise in international trade?

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