Post Utme Lautech 2021 Economics Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Lautech Economics examination.

Post Utme Lautech 2021 Economics Objective / Multiple Choice
Question 11 POST_UTME_LAUTECH • 2021 • 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. If the percentage change in the exchange rate is 10% and the percentage change in the export price is 15%, what is the minimum percentage change in the import price required for the Marshall-Lerner condition to hold?

Answer Options

Correct Answer A. 5%
B. 10%
C. 15%
D. 20%
Correct Answer
A
Correct Option:
5%

About This Question

This is Post Utme Lautech 2021 Economics Question 11. It is one of the objective questions from the 2021 Post Utme Lautech Economics examination.

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