Post Utme Veritas University 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_VERITAS_UNIVERSITY • 2020 • ECONOMICS • objective

U\sing the Marshall-Lerner condition, determine the effect of a 10% depreciation in the value of the Nigerian naira on the balance of payments when the import elasticity of demand is 2 and the export elasticity of supply is 1.5.

Answer Options

A. The balance of payments will improve.
Correct Answer B. The balance of payments will worsen.
C. The balance of payments will remain unchanged.
D. Insufficient information to determine the effect.
Correct Answer
B
Correct Option:
The balance of payments will worsen.

About This Question

This is Post Utme Veritas University 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Veritas University Economics examination.

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