Assertion (A): Marshall-Lerner condition should be fulfilled if devaluation is to be successful. Reason (R): Devaluation makes exports costly and imports cheaper.

Posted by MCQ LOG at 9:28 PM

Assertion (A): Marshall-Lerner condition should be fulfilled if devaluation is to be successful.
Reason (R): Devaluation makes exports costly and imports cheaper.

Codes :

(1) Both (A) and (R) are correct

(2) Both (A) and (R) are not correct

(3) (A) is correct but (R) is not correct explanation of (A)

(4) (A) is correct and (R) is the correct reason of (A)


Answer: (3) (A) is correct but (R) is not correct explanation of (A)