In a country, the Marshall-Lerner condition for an improvement in the trade balance is met in the long run, yet import and export quantities take a long time to react to price changes. The government devalues its currency in order to cut its trade deficit. Which curve shows the likely movement of the trade balance?
- Acurve A (diagram)
- Bcurve B (diagram)
- Ccurve C (diagram)
- Dcurve D (diagram)