Because of the J-Curve Effect and Partial Currency Pass-Through,a Depreciation

question 30

Multiple Choice

Because of the J-curve effect and partial currency pass-through,a depreciation of the domestic currency tends to increase the size of a:

• A) Trade surplus in the short run
• B) Trade surplus in the long run
• C) Trade deficit in the short run
• D) Trade deficit in the long run

---

Definitions:

Salespeople

Professionals who sell products or services with the aim of meeting customer needs and achieving sales targets.

Products

Items or services offered for sale, including physical goods, digital items, and services.

POP

Point of Purchase, referring to the location and timing where a retail transaction is completed.

Sales Promotions

Marketing activities that aim to boost sales and attract customers by offering limited-time incentives.