Post Utme Christopher University 2021 Economics Question 40

Practice objective / multiple choice question 40 from the 2021 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2021 Economics Objective / Multiple Choice

Question 40 POST_UTME_CHRISTOPHER_UNIVERSITY • 2021 • ECONOMICS • objective

Suppose the Marshall-Lerner condition holds for a country with a trade deficit. Which of the following would be a consequence of a depreciation in the exchange rate?

Answer Options

A. An increase in the trade deficit

Correct Answer B. A decrease in the trade deficit

C. No change in the trade deficit

D. A decrease in the trade surplus

Correct Answer

Correct Option:

A decrease in the trade deficit

About This Question

This is Post Utme Christopher University 2021 Economics Question 40. It is one of the objective questions from the 2021 Post Utme Christopher University Economics examination.

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