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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When speculators buy gasoline during the low demand spring in order to sell it during the high demand summer, they cause an increase in dead weight loss in the spring that is more than made up for by an increase in social surplus in the summer.
Answer the following statement true (T) or false (F)
In the economic way of thinking, profit and loss can be eliminated only by
A) appropriate and effective price controls. B) careful and detailed government regulation of business. C) a total elimination of uncertainty. D) taxation. E) the confiscation of private property.
In the above table, which plan is a flat-rate tax?
A) only plan A B) only plan B C) only plan C D) both plan A and plan C
British manufacturers lost their competitive edge in the early twentieth century to industries in the United States and elsewhere in Europe mainly because they failed to reorganize their operations to take full advantage of their inventions
Indicate whether the statement is true or false