Post Utme Al Hikmah University 2025 Economics Question 29

Practice objective / multiple choice question 29 from the 2025 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2025 Economics Objective / Multiple Choice
Question 29 POST_UTME_AL-HIKMAH_UNIVERSITY • 2025 • 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 Al Hikmah University 2025 Economics Question 29. It is one of the objective questions from the 2025 Post Utme Al Hikmah University Economics examination.

View More Post Utme Al Hikmah University 2025 Economics Questions More Post Utme Al Hikmah University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support