The J-Curve Effect That Results from Currency Depreciation Results Is

question 26

Multiple Choice

The J-curve effect that results from currency depreciation results is due to

• A)the initial effect having positive effects on the current account balance.
• B)the value of imports increasing by more than the value of exports at the time of devaluation.
• C)exports and imports being totally unresponsive to changes in exchange rates.
• D)decreases in the dollar price of imports.

---

Definitions:

Classical Conditioning

An educational technique that is achieved by the correlation between an environmental stimulus and one that is naturally inherent, leading to a learned action.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a feeling of contempt for other cultures.

Evaluating People

The process of making judgments about the traits, qualities, and abilities of others.

Asch's Conformity Study

A social psychology experiment that demonstrated the power of conformity in groups, where individuals often agreed with an incorrect majority.