Given the equation for the Marshall-Lerner condition: (E1 × E2) > 1, where E1 represents the price elasticity for domestic exports and E2 represents the price elasticity for imports. A devaluation will improve the trade balance only if:
1
E1 or E2 is greater than 1
2
E1 and E2 are both less than 1
3
E1 is positive; E2 is negative
4
E1 and E2 are both greater than 1