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).

Answered by ZoeTemiloluwa C. Economics tutor

7497 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

How is the market equilibrium determined?


What's the difference between movements along and shifts in the demand curve?


Why are subsidies a more efficient way of reducing prices than price ceilings are?


Explain the effect of a subsidy on equilibrium price and quantity in a demand and supply model.


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 2013–2024

Terms & Conditions|Privacy Policy