The Marshall-Lerner condition holds that a country's current ...

[mrsjacobs44]

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) improve; depreciation; sum of the price elasticities of export and import demand exceeds 1
  B) worsen; 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 1
  D) improve; appreciation; sum of the price elasticities of export and import demand exceeds 0
  E) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0

Question 2

The term contagion refers to
 
  A) a government's complete control over it's banking system.
  B) a drop in interest rates across industrialized countries.
  C) the vulnerability of healthy economies to crises generated by events elsewhere.
  D) a directed attack on one market by a foreign market.
  E) a side effect of international trade.

[tuwy]

Answer to Question 1

A

Answer to Question 2

C

[mrsjacobs44]

Gracias!

[nathang24]

Thanks for the timely response, appreciate it