Post Utme Achievers University 2021 Economics Question 24

Practice objective / multiple choice question 24 from the 2021 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2021 Economics Objective / Multiple Choice
Question 24 POST_UTME_ACHIEVERS_UNIVERSITY • 2021 • ECONOMICS • objective

The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?

Answer Options

Correct Answer A. A 10% increase in export prices and a 5% decrease in import prices
B. A 5% decrease in export prices and a 10% increase in import prices
C. A 10% increase in export prices and a 10% increase in import prices
D. A 5% decrease in export prices and a 5% decrease in import prices
Correct Answer
A
Correct Option:
A 10% increase in export prices and a 5% decrease in import prices

About This Question

This is Post Utme Achievers University 2021 Economics Question 24. It is one of the objective questions from the 2021 Post Utme Achievers University Economics examination.

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