What does the Marshall-Lerner condition say must happen for a depreciation of a currency to improve the trade balance in the long run?
Question 2
Why might a country's trade balance initially worsen after its currency depreciates?
Question 3
What does the J-Curve describe?
Question 4
Which situation best suggests that the Marshall-Lerner condition is more likely to be satisfied?
Question 5
A country depreciates its currency. In the first few months, its import bill rises sharply while export volumes barely change. Which explanation fits this outcome best?
