MCQOPTIONS
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				| 1. | 
                                    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 ? | 
                            
| A. | the absorption approaches | 
| B. | the Marshall Lerner approach | 
| C. | the monetary approach | 
| D. | the elasticities approach | 
| Answer» B. the Marshall Lerner approach | |