It Is Possible That the J-Curve Path for BOT Adjustments

question 6

True/False

It is possible that the J-curve path for BOT adjustments may be be elongated or even inapplicable if exports are NOT predominately priced in the domestic currency and/or imports are NOT predominately priced in the foreign currency.

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Definitions:

Trust Fund Bonds

Financial securities issued by a trust to raise capital, often backed by other assets.

Life Expectancy

The average period that a person is expected to live, based on statistical measures that correlate with current mortality rates.

Labor Participation

The percentage of the working-age population that is either employed or actively looking for work.