The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________. ( )
A: worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0
B: improve; depreciation; sum of the price elasticities of export and import demand exceeds 1
C: improve; appreciation; sum of the price elasticities of export and import demand exceeds 0
D: worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1
A: worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0
B: improve; depreciation; sum of the price elasticities of export and import demand exceeds 1
C: improve; appreciation; sum of the price elasticities of export and import demand exceeds 0
D: worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1
举一反三
- Marshall-Lerner condition is that the payments deficit will be improved as a result of currency depreciation only if_______ 。( ) A: the sum of elasticity of demand for goods import and that for goods export equals one. B: the sum of elasticity of demand for goods import and that for goods export is less than one. C: the sum of elasticity of demand for goods import and that for goods export is larger than one. D: the sum of elasticity of demand for goods import is greater than that for goods export.
- The Marshall–Lerner condition indicates a stable foreign<br/>exchange market if the sum of the price elasticities of the demand<br/>for imports and the demand for exports0, in absolute terms, is less<br/>than 1. ()
- According to the Marshall-Lerner approach, a currency depreciation will best lead to an improvement on the home country's trade balance when the: A: Home demand for imports is inelastic--foreign export demand is inelastic B: Home demand for imports is inelastic--foreign export demand is elastic C: Home demand for imports is elastic--foreign export demand is inelastic D: Home demand for imports is elastic--foreign export demand is inelastic
- The Marshall-Lerner condition applies only if ηx+ηm > 1, in whichηx+ηm is ( ) A: supply price elasticity of domestic import and export commodities B: demand income elasticity of domestic imports and exports commodities C: expected Elasticity of demand for domestic imports and exports commodities D: demand price elasticity of domestic imports and exports commodities
- One implication of an empirical investigation of the Marshall-Lerner condition is that, in the ________, a real ________ in a nation's currency is likely to ________ the country's current account balance. ( ) A: long-run; appreciation; improve B: short-run; depreciation; improve C: long-run; depreciation; improve D: short-run; appreciation; improve