The Marshall-Lerner condition suggests that if the sum of a country's elasticity of demand for imports and the foreign elasticity of demand for the country's exports exceeds 1.0, an appreciation of the country's exchange rate will worsen its balance of trade.

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The Marshall-Lerner condition states that an appreciation of the country's exchange rate will worsen its balance of trade if the sum of its elasticity of demand for imports and the foreign elasticity of demand for the country's exports exceeds 1.0.

The Marshall-Lerner Condition Suggests That If the Sum of a Country's