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

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Definitions:

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The part of the nervous system that includes all the nerves outside the brain and spinal cord, responsible for transmitting information to and from the central nervous system.

Nerve Processes

The extensions from a neuron, including dendrites and axons, that transmit electrical and chemical signals to and from the nerve cell body.

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