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According to the Marshall-Lerner condition, when a country's currency depreciates in real terms its trade balance will improve if Your answer: elasticity of demand for exports = 0.9; elasticity of

According to the Marshall-Lerner condition, when a country's currency depreciates in real terms its trade balance will improve if Your answer: elasticity of demand for exports = 0.9; elasticity of demand for imports = -0.4 elasticity of demand for exports = -0.8; elasticity of demand for imports = -0.3 elasticity of demand for exports = 0.5; elasticity of demand for imports =- 0.2 elasticity of demand for exports = 0.3; elasticity of demand for imports = -0.5 Clear answer
0.8 FX RATE REAL FX IS 0.6 0.5 0.4 0.3 0.2 0.1 0.1 0.2 How can you explain occurence of stable nominal exchange rate while the real exchange rate significantly appreciates between 2003 - 2008 Your answer: O Equal inflation rates with trade partners. O Lower inflation rates than trade partners O Higher inflation rates than trade partners
1. 2 3 4 5 6 7 Question 7 Because of the J-Curve effect a real depreciation of the domestic currency tends to increase the size of a Your answer: trade surplus in the short run trade surplus in the long run trade deficit in the short run trade deficit in the long run Clear answer
Question 9 According to the Marshall-Lerner condition, if a country's currency depreciates its trade balance will worsen if Your answer: elasticity of demand for exports = 0.9; elasticity of demand for imports = -0.4 elasticity of demand for exports = 0.7; elasticity of demand for imports = -0.3 elasticity of demand for exports = 0.5; elasticity of demand for imports =- 0.7 elasticity of demand for exports = 0.3; elasticity of demand for imports = -0.6 Clear answer

Apr 08 2021 View more View Less

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