The J Curve Shows That

question 19

Multiple Choice

The J curve shows that:

• A)devaluation is more likely to improve the trade balance in the short-run than in the long-run.
• B)devaluation is more likely to improve the trade balance after a longer span of time has elapsed.
• C)devaluation is likely to be unstable.
• D)devaluation is unlikely to improve the trade balance in either the short-run or the long-run.

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Definitions:

Duty of Loyalty

An obligation of fiduciaries, such as corporate directors or trustees, to act in the best interest of their beneficiaries or the corporation without conflict of interest.

Powers of Attorney

Legal documents that grant one person the authority to act on behalf of another in legal or financial matters.

Express Trust

A fiduciary relationship deliberately created by the trustor through direct declaration, specifying how trust assets are to be held and managed by a trustee.

Per Capita

A method of distributing an intestate’s estate so that each heir in a certain class (such as grandchildren) receives an equal share.