Post Utme Uniosun 2019 Economics Question 21

Practice objective / multiple choice question 21 from the 2019 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2019 Economics Objective / Multiple Choice
Question 21 POST_UTME_UNIOSUN • 2019 • 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 is greater than the percentage change in its exchange rate. What is the implication of this condition for a country experiencing a devaluation?

Answer Options

A. The country's balance of payments will worsen.
Correct Answer B. The country's balance of payments will improve.
C. The country's balance of payments will remain unchanged.
D. The country's balance of payments will dep\end on other factors.
Correct Answer
B
Correct Option:
The country's balance of payments will improve.

About This Question

This is Post Utme Uniosun 2019 Economics Question 21. It is one of the objective questions from the 2019 Post Utme Uniosun Economics examination.

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