Post Utme Ui 2018 Economics Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Ui Economics examination.

Post Utme Ui 2018 Economics Objective / Multiple Choice
Question 6 POST_UTME_UI • 2018 • ECONOMICS • objective

The Marshall-Lerner condition states that a country will benefit from a devaluation of its currency if the sum of the price elasticities of demand for imports and exports is greater than 1. What is the implication of this condition on the balance of payments?

Answer Options

Correct Answer A. The balance of payments will improve.
B. The balance of payments will worsen.
C. The balance of payments will remain unchanged.
D. The Marshall-Lerner condition is irrelevant to the balance of payments.
Correct Answer
A
Correct Option:
The balance of payments will improve.

About This Question

This is Post Utme Ui 2018 Economics Question 6. It is one of the objective questions from the 2018 Post Utme Ui Economics examination.

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