Empirical regularity is the standard case

Reference no: EM13692324

A. What does the marshall-Lerner condition look like if the assumption that changes in the exchange rate are relatively small does not hold?

B. Show the modified equation and explain how it is different- and how it makes a difference- compared to the standard case.

C. Do you think that the empirical regularity is the standard case or the modified case you have derived? Explain

Reference no: EM13692324

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