The J-Curve Effect Implies That in the Short Run a Currency

question 71

True/False

The J-curve effect implies that in the short run a currency depreciation will result in a balance of trade surplus for the home country.As time passes, however, the home country's balance of trade will move toward deficit.

---

Definitions:

Genetic Makeup

The complete set of genetic information in an organism, including all of its genes, inherited from its parents.

Psychologist

A psychologist is a professional who studies mental processes and behavior, often working in research, education, counseling, or clinical settings to diagnose and treat mental health issues.

Structuralism

An approach in psychology (and also in sociology and linguistics) that analyzes elements of human culture, society, and mind; it suggests that these parts of society are structured to maintain its stability.

Functionalism

A perspective in sociology and psychology that views society as a complex system whose parts work together to promote solidarity and stability.