According to the J-Curve Effect,a Depreciation of the Pound's Exchange

question 32

Multiple Choice

According to the J-curve effect,a depreciation of the pound's exchange value has:

• A) No impact on a U.K.balance-of-trade deficit in the short run
• B) No impact on a U.K.balance-of-trade deficit in the long run
• C) An immediate negative effect on the U.K.balance of trade
• D) An immediate positive effect on the U.K.balance of trade

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Definitions:

Language Acquisition Device

A hypothetical module of the human brain posited by Noam Chomsky that allows people to understand language structure and acquire language.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge, etc.—to oneself and to others and to understand that others have beliefs, desires, intentions, and perspectives that are different from one's own.

False Belief

An understanding that others can hold beliefs or perspectives that are different from one's own, even if those beliefs are incorrect; a critical aspect of theory of mind.