Solution-Economy the marshall-lerner condition

Economy the marshall-lerner condition

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Reference no: EM131357841

Assume that for an economy the Marshall-Lerner condition does not hold, and further, elasticities are such that the depreciation of the domestic currency actually worsens the current account balance. Also assume that the economy is operating under flexible exchange rates. What will be the shape & slope of the BP curve?

Reference no: EM131357841

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Economy the marshall-lerner condition

Reference no: EM131357841

Reference no: EM131357841

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