A country is running a balance of payments deficit. It then devalues its currency. Which combination causes its balance of payments deficit to fall in the long run?
- Aprice elasticity of demand for exports less than 0.5 / price elasticity of demand for imports less than 0.5
- Bprice elasticity of demand for exports less than 1 / price elasticity of demand for imports zero (0)
- Cprice elasticity of demand for exports more than 0.5 / price elasticity of demand for imports more than 0.5
- Dprice elasticity of demand for exports zero (0) / price elasticity of demand for imports less than 1