For this question, assume that the Marshall-Lerner condition does not hold. A reduction in the real exchange rate will tend to cause which of the following to occur?

A) a reduction in NX and a reduction in foreign output (Y)
B) a reduction in NX and an increase in domestic output (Y)
C) an increase in NX and a reduction in Y
D) an increase in NX and an increase in Y
E) none of the above

A

Economics

You might also like to view...

Briefly explain the process of securitizing mortgages

What will be an ideal response?

Economics

The most volatile part of wealth is:

a. transfer payments b. bonds c. the stockmarket d. savings accounts

Economics