SIMON asked in Social ScienceEconomics · 1 month ago

Derive the Marshall-Lerner condition for a "normal"' response of the current account to an increase of the exchange rate. ?

Explain the J-curve effect.

1 Answer

  • Oiy
    Lv 6
    1 month ago

    If the total demand for export products is elastic, the increase in or depreciation will be the cause of the trade account deficits.

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