A country has a balance of trade deficit.
When will this be least likely to be improved as a result of a depreciation of its currency?
1 )
if it is currently operating with a significant amount of unused resources
if the sum of the price elasticities of demand for exports and imports is less than 1
3 )
if in the long term, the price elasticity of demand for exports should increase
4 )
if the country uses a relatively small proportion of imports in their production process
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