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).

ZC
Answered by ZoeTemiloluwa C. Economics tutor

10175 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain one externality that could come about as a result of a factory producing clothes.


Explain why the demand for food is relatively price inelastic


What is the balance of payments?


What are the short term pricing differences in the different market structures?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning