balance of payments

• What happens to the current account if PED of exports and imports is inelastic and there is a favourable movement in terms of trade?

  It improves the current account
• What is the effect on the current account if PED of exports and imports is elastic and there is a favourable movement in terms of trade?

  It worsens the current account
• What does PED stand for in economics?

  • Price Elasticity of Demand