The Marshall-Lerner Condition states that currency devaluation will improve the trade balance if the sum of price elasticities of demand for exports and imports is:
ALess than one (|Ex + Em| < 1)
BEqual to zero
CEqual to infinity
DGreater than one (|Ex + Em| > 1)
Explanation
Devaluation successfully improves trade balance only if export and import demand elasticity combined exceeds unity.
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