Post Utme Eksu 2023 Economics Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Eksu Economics examination.

Post Utme Eksu 2023 Economics Objective / Multiple Choice
Question 1 POST_UTME_EKSU • 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. Which of the following scenarios would lead to an improvement in the balance of payments?

Answer Options

Correct Answer A. An increase in the price of a country's exports and a decrease in the price of its imports
B. A decrease in the price of a country's exports and an increase in the price of its imports
C. An increase in the price of a country's exports and an increase in the price of its imports
D. A decrease in the price of a country's exports and a decrease in the price of its imports
Correct Answer
A
Correct Option:
An increase in the price of a country's exports and a decrease in the price of its imports

About This Question

This is Post Utme Eksu 2023 Economics Question 1. It is one of the objective questions from the 2023 Post Utme Eksu Economics examination.

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