What is the Marshall Lerner Condition?

MLC states that a devaluation (in the LR) will only have a positive effect on the current account if the sum of the elasticities of demand for exports and imports is negative and numerically greater than 1 (elastic).

ZC
Answered by ZoeTemiloluwa C. Economics tutor

10564 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What factors cause the shifts and movements of the demand curve?


Why is the demand curve downward sloping


Explain the impact on a firm due to an increase in the minimum wage.


Why are UK government gilt (bond) yields rising and why is that bad?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning