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Author Question: The Marshall-Lerner condition holds that a country's current account balance will ________ in ... (Read 50 times)

mrsjacobs44

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on: Jun 30, 2018
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.


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tuwy

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


mrsjacobs44

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Reply 2 on: Jun 30, 2018
Gracias!

Zebsrer

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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