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Economics
MEDIUM
ENGLISH
Economics
Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ?
home demand for imports is inelastic and foreign export demand is inelastic
Correct answer
B
home demand for imports is elastic and foreign export demand is inelastic
Option B
C
home demand for imports is inelastic and foreign export demand is elastic
Option C
D
home demand for imports is elastic and foreign export demand is elastic
Option D
Correct answer: A
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