Author Question: The Marshall-Lerner condition is less likely to hold when A) imports and exports are very ... (Read 91 times)

lidoalex · **on:** Jun 30, 2018

The Marshall-Lerner condition is less likely to hold when

A) imports and exports are very price-sensitive.
B) the trade deficit is large.
C) the marginal propensity to consume is very large.
D) the marginal propensity to consume if very small.
E) none of the above

Question 2

What is the major reason for oil price to go up in the 2000s?

A) formation of the OPEC
B) fast of growth of emerging economies
C) new energy
D) higher demand from the US