What does the Marshall–Lerner condition say must exist for a currency depreciation to lead to an improvement in the current account balance?
- AThe price elasticity of demand for exports and the price elasticity of demand for imports are both greater than one.
- BThe price elasticity of demand for exports and the price elasticity of demand for imports are both less than one.
- CThe sum of the price elasticity of demand for exports and the price elasticity of demand for imports is greater than one.
- DThe sum of the price elasticity of demand for exports and the price elasticity of demand for imports is less than one.