A necessary condition for exchange rate stability where the sum of the elasticity of import demand and the elasticity of export supply must be greater than one is known as
A) the Marshall Lerner condition.
B) the elasticities rule.
C) the elasticities approach.
D) the exchange rate condition.
A
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The opportunity cost of attending college might best be described as
A) the money that must be paid in order to attend college. B) the lowest-valued alternative use of the student's time. C) the highest-valued alternative use of the student's time. D) the value that the student attaches to not working.
Expectations that the price level will increase in the future will:
a. shift the current consumption function upward b. make the current consumption function steeper. c. make the current consumption function flatter. d. result in a downward movement along the current consumption function. e. shift the current consumption function downward.