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Assuming that the supply of exports and imports are perfectly elastic, at which combination of elasticities of demand for imports and exports would a 10 % fall in the value of a currency lead to a worsening of the trade account of a country’s balance of payments? elasticity of demand for exports elasticity of demand for imports A 0.5 0.25 B 0.5 0.5 C 1.0 0.75 D 1.0 1.0

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