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

9907 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain why firms in the pharmaceutical industry can charge different prices for the same drug in different countries. (15 marks)


Explain the difference between direct and indirect costs.


What are the advantages and disadvantages of globalisation? (6)


With reference to a poverty trap (poverty cycle), explain how “investing in human development is crucial to ... reducing poverty”


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:

© 2025 by IXL Learning