Post Utme Rhema University 2021 Economics Question 34

Practice objective / multiple choice question 34 from the 2021 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2021 Economics Objective / Multiple Choice
Question 34 POST_UTME_RHEMA_UNIVERSITY • 2021 • ECONOMICS • objective

The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments 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 is a necessary condition for this to occur?

Answer Options

Correct Answer A. The country's export demand is elastic
B. The country's import demand is inelastic
C. The country's exchange rate is fixed
D. The country's trade balance is in surplus
Correct Answer
A
Correct Option:
The country's export demand is elastic

About This Question

This is Post Utme Rhema University 2021 Economics Question 34. It is one of the objective questions from the 2021 Post Utme Rhema University Economics examination.

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