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Question
If the sum of elasticities of demands for both imports and exports is less than 1, then:
a. the Marshall-Lerner condition is met and trade balance improves.
b. the Marshall-Lerner condition is met and trade balance decreases.
c. the Marshall-Lerner condition is not met and trade balance improves.
d. the Marshall-Lerner condition is not met and trade balance decreases.
Answer
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Related questions
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Q:
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