Other questions in this quiz

2. high inflation increases demand for exports

  • False
  • True

3. what is the marshall lerner condition

  • capital account worsens if elastic
  • that a depreciation in the currency will imprrove the current account if price inelastic
  • high exports means less imports

4. what is the jcurve effect

  • inital detoriaration before improvement of the balance of payments
  • ped inelastic will raise import expenidture

5. lack of control over monetary policy under fixed exchange rate

  • True
  • False

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