Question

29. Devaluation to be successful the
sum of total of export-import
demand elasticity's must be equal to
२१.निर्यात-निर्यात मागणीच्या लवचिकतेच्या
एकूण बेरीजची रक्कम यशस्वी होण्यासाठी
मूल्यमापन करणे समान आहे
O O
a. Oneअ. एक
Ob. greater than oneबी. एकापेक्षा मोठे
Oc. less than oneसी. एकापेक्षा कमी
d. zero
Clear seled​

Answer 1

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The Theory:

This is what the Marshall-Lerner condition states: when the sum of price elasticities of demand for exports and imports in absolute terms is greater than unity, devaluation will improve the country's balance of payments, i.e.