MCQOPTIONS
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| 1. |
Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ? |
| A. | the absorption approaches |
| B. | the Marshall Lerner approach |
| C. | the monetary approach |
| D. | the elasticities approach |
| Answer» B. the Marshall Lerner approach | |