Post Utme Delsu 2023 Economics Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Delsu Economics examination.

Post Utme Delsu 2023 Economics Objective / Multiple Choice
Question 36 POST_UTME_DELSU • 2023 • ECONOMICS • objective

The Marshall-Lerner condition states that if the sum of the elasticities of demand for imports and exports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. Which of the following is a correct interpretation of this condition?

Answer Options

Correct Answer A. A devaluation will lead to a decrease in imports and an increase in exports.
B. A devaluation will lead to an increase in imports and a decrease in exports.
C. A devaluation will lead to an increase in both imports and exports.
D. A devaluation will lead to a decrease in both imports and exports.
Correct Answer
A
Correct Option:
A devaluation will lead to a decrease in imports and an increase in exports.

About This Question

This is Post Utme Delsu 2023 Economics Question 36. It is one of the objective questions from the 2023 Post Utme Delsu Economics examination.

View More Post Utme Delsu 2023 Economics Questions More Post Utme Delsu 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