Question
If the exchange rate of some economy depreciates
vis−a−vis US $ and if the Marshal Lerner condition is satisfied, then the current account deficit of that economy is expected toSolution
Marshall−Lerner condition ensures that devaluation improves a country’s balance of trade position if the sum of the price elasticities of demand for exports and imports (in absolute value) is greater than 1. Assuming that this condition is being fulfilled, then depreciation in exchange rate will decrease the current account deficit.
What is the primary focus of DPIIT's MoU with Flipkart under the Startup India program?
What technology does the RBI's "MuleHunter" system use to prevent digital fraud?
What was the revised completion timeline for the Vizhinjam International Seaport project as per the supplementary concession agreement?
What unique feature makes Nafithromycin a significant development in Indian healthcare?
The University of _______ and advertising agency Rediffusion to launch 'The Bharat Lab' to provide opportunities for faculty and students to exchange kn...
Who chairs the Technical Expert Group formed for the 2026 Household Income Survey?Â
Which bank became the first in the private sector to integrate Unified Payments Interface (UPI) and National Common Mobility Card (NCMC) features in RuP...
What innovative feature does the Sanraksha Mobile App offer for Indian Railways?
Why is the Philippines finalizing a missile deal with India?
What is the theme for the International Day of Education 2025?
