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Under fixed exchange rates, the economy will always return to equilibrium following a transitory shock provided that: Question 12 options: the Marshall-Lerner condition not only

Under fixed exchange rates, the economy will always return to equilibrium following a transitory shock provided that: Question 12 options: the Marshall-Lerner condition not only holds but is large enough to offset effects coming through imports imports are a relatively small part of the economy there are no tariffs or other distortions to trade the Marshall-Lerner condition holds

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