The J- Curve Illustrates the Effects Of

question 60

Multiple Choice

The J- curve illustrates the effects of:

• A) changes in Y on NX.
• B) changes in Y* on NX.
• C) changes in Y on imports.
• D) changes in the real exchange rate on NX.
• E) changes in the real exchange rate on Y.

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Definitions:

Present Value Factor

A number by which a future payment is multiplied to determine its present value.

Annuity

An economic scheme that delivers fixed periodic earnings to recipients, usually serving as financial support for those retired.

Payments

Transactions where a good or service is exchanged for monetary compensation.

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.