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.
Which of the following statements best explains the process of sublimation?
Where in India the Cold Biosphere Desert located?
Purvanchal Himalayas does NOT comprise of:
What does SPRINT stand for in the context of the Indian Navy’s initiative to boost the usage of indigenous technology?
Which one of the following is not a genetic disease?
What is the minimum percentage of net profit that companies must spend on CSR under the Companies Act, 2013?
Mameluke style of architecture belongs to which dynasty?
Which constitutional amendment, known as 'mini constitution', gave effect to the recommendations of the Swaran Singh Committee?
Which of the following is NOT an autobiography of a sportsperson?
Which ruler of the Chahamana dynasty made Ajmer his capital?
