The "J-Curve Effect" Shows

question 92

Multiple Choice

The "J-curve effect" shows

• A)the initial deterioration and the eventual improvement of a country's trade balance following a currency depreciation.
• B)the initial improvement and the eventual depreciation of a country's trade balance following a currency depreciation.
• C)the trade balance's lack of responsiveness to the exchanges rate changes.
• D)none of the above