Exchange Rate Adjustments and the Balance – of - Payments
3 important questions on Exchange Rate Adjustments and the Balance – of - Payments
The Marshall Lerner condition:
The types of lags that may occur between changes in relative prices and the quantities of goods traded include the following:
Of changing competitive conditions.
Decision lags:
Between the time new orders are placed and when their impact on trade and payment flows it felt.
Replacement lags:
In using up inventories and wearing out existing machinery before placing orders.
Production lags:
Involved in increasing the output of commodities for which demand has increased.
Exchange rate pass-through:
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
![Trustpilot Logo](/images/design_2020/lp/clp-trustpilot-en.png)