A country lowers the value of its currency in the hope that a deficit on the current account of the balance of payments will fall. What must occur for this to happen?
- Aany tariff on imports must be matched by a subsidy on goods to be exported
- Bthe elasticity of demand for imports and the elasticity of demand for exports must both be greater than 1
- Cthe rate of domestic inflation is equal to the rate of inflation in the foreign market
- Dthe sum of the elasticities of demand for domestic imports and the foreign demand for exports is greater than 1