The price elasticity of demand for a country's exports is 0.3 in the short run and 0.9 in the long run. The price elasticity of demand for its imports is 0.4 in the short run and 0.8 in the long run. The figures are invented. Explain, using the Marshall–Lerner condition, how a depreciation of the country's currency is likely to affect its current account balance in the short run and in the long run.

HL Paper 3-style short part (standalone practice; not an IB question).