According to the J-Curve Effect, a Depreciation of the Pound's

question 65

Multiple Choice

According to the J-curve effect, a depreciation of the pound's exchange value has

• A) no impact on a U.K. balance-of-trade deficit in the short run.
• B) no impact on a U.K. balance-of-trade deficit in the long run.
• C) an immediate negative effect on the U.K. balance of trade.
• D) an immediate positive effect on the U.K. balance of trade.