Suppose that both the supply curve of imports to country a and the supply curve of exports from country A are horizontal (as in figure 6). Assume that at a predepreciation value of A’s currency, country a sells 975 units of exports and purchases 810 units of imports. (You do not need to know the actual prices of imports and exports, but assume that trade is initially balanced.) Suppose now that there is a 10 percent depreciation of A’s currency against foreign currencies and that because of the depreciation exports rise to 1,025 units and imports fall to 790 units. Would the simple marshall-lerner condition suggest that country A’s current account balance has improved or deteriorated because of this depreciation of its currency? Explain carefully.