The Marshall-Lerner Condition states that

A.depreciation always has a favorable effect on the current

B.import dependency reinforces the effects of depreciation on the current account.

C.high elasticity of exports is sufficient for the favorable effects of depreciation on the current account to be

D.depreciation has a favorable effect on the current account only if the sum of export and import elasticities is greater than

E.the sum of import and export elasticities must be equal to one in order for depreciation to

Answer: D