Multiple Choice
The Marshall-Lerner condition suggests that depreciation of the Swiss franc leads to a worsening of Switzerland's trade balance if the
A) elasticity of demand for Swiss exports is 0.4 while the Swiss elasticity of demand for imports is 0.2.
B) elasticity of demand for Swiss exports is 0.6 while the Swiss elasticity of demand for imports is 0.4.
C) elasticity of demand for Swiss exports is 0.5 while the Swiss elasticity of demand for imports is 0.7.
D) elasticity of demand for Swiss exports is 0.6 while the Swiss elasticity of demand for imports is 0.7.
Correct Answer:
Verified
Correct Answer:
Verified
Q69: In the early 1990s, the yen sharply
Q70: American citizens planning a vacation abroad would
Q71: The J-curve effect implies that in the
Q72: Suppose a country devalues its currency.If the
Q73: The shorter the currency pass-through period, the
Q75: The Marshall-Lerner condition illustrates<br>A) the price effects
Q76: The Marshall-Lerner condition suggests that if the
Q77: According to the Marshall-Lerner condition, a currency
Q78: What is a pass-through relationship?
Q79: The elasticity approach to currency depreciation emphasizes