dse 2012 macro questiom

[Amrith]

Consider a small open economy with fixed nominal exchange rate (E), fixed domestic price level (P) and fixed foreign price level (Pf). Let "e" be the corresponding real exchange rate. The goods market equilibrium condition is given by the following IS equation:
Y = C + I + G + X - IM/e
where
C = c0 + c1Y represents domestic consumption
I = d1Y  -d2r represents domestic investment
G represents government expenditure
X = x1Yf-x2e represents export
Yf represents income of the foreign country
IM = m1Y + m2e represents import


(d) A negatively sloped schedule irrespective of the Marshall-Lerner con-
dition



(a) A positively sloped schedule if theMarshall-Lerner condition is satised
(b) A negatively sloped schedule if the Marshall-Lerner condition is satis-
ed
(c) A positively sloped schedule irrespective of the Marshall-Lerner condi-
tion
(d) A negatively sloped schedule irrespective of the Marshall-Lerner con-
dition

[Amrith]

answer has a: i.e, a positively slope schedule if marshall-lerner condition satisfied.

bcoz.. if e (real exchange rate) increase implies real depreciation of home currency . actually it will have two impact on net exports
 1)unambiguous increase in exports
2) on imports -it depends on volume effect or value effect. i.e to say it depends on import/export elasticities alpha and beta.
if M-L condition is not satisfied it might even deteriorate  NX.
iff M-L condition satisfied alpha +beta >1 then it improves the NX... results in a positive schedule IS CURVE (in Y-e plane)

 am i right?