2064EconomicsMedium
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?
Athe elasticities approach
Bthe Marshall Lerner approach
Cthe monetary approach
Dthe absorption approaches
Correct answer
D. the absorption approaches
Explanation
The correct answer is the absorption approaches.