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

10562 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain what the possible results could be from increasing the Euro/US dollar exchange rate (you are Euro)


What is Price Elasticity of Demand?


Explain why a rise in GDP will lead to a rise in the standard of living


Analyse how an increase in wages could cause inflation.


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