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Commerce · Q553

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 553

Q553

If the sum of the elasticities of the exports and imports is less than one, any devaluation will further aggravate the deficit in the BOP. Who has given this view?

A.
Marshall and Lerner
Answer
B.
Harrod and Domar
C.
Solow and Swan
D.
Hickscher and Ohlin

Answer: Option A

Solution

Answer: Option A
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