According to the Marshall-Lerner condition if a country’s currency depreciates its trade balance will worsen if ?

Related Mcqs:

Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?

A. partial currency pass through B. complete currency pass through C. partial J curve effect D. complete J curve effect...

Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ?

A. home demand for imports is inelastic and foreign export demand is inelastic B. home demand for imports is elastic and foreign export demand is inelastic C. home demand for imports is inelastic and foreign export demand is elastic D. home demand for imports is elastic and foreign export demand is elastic...

Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?

A. appreciation in the value of both currencies B. depreciation in the value of both currencies C. appreciation in the value of the yen against the mark D. depreciation in the value of the yen against the mark...

Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S?

A. import prices to fall by 10 percent B. import prices to rise by 10 percent C. export prices to rise by 10 percent D. export prices to fall by 10 percent...

Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?

A. improves B. worsens C. is unaffected D. falls for a while before increasing...