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

9566 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is the PPF curve and what would cause it to shift?


Explain one benefit of international trade for UK consumers.


Evaluate the view that perfect competition is a more efficient market structure than monopoly.


Explain price elasticity of demand


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences