Post Utme Babcock University 2023 Economics Question 26

Practice objective / multiple choice question 26 from the 2023 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2023 Economics Objective / Multiple Choice
Question 26 POST_UTME_BABCOCK_UNIVERSITY • 2023 • 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. What is the implication of this condition on a country's trade balance?

Answer Options

A. The trade balance will worsen
Correct Answer B. The trade balance will improve
C. The trade balance will remain unchanged
D. The trade balance will dep\end on other factors
Correct Answer
B
Correct Option:
The trade balance will improve

About This Question

This is Post Utme Babcock University 2023 Economics Question 26. It is one of the objective questions from the 2023 Post Utme Babcock University Economics examination.

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