The J-Curve Effect Refers to the Observation That

question 209

Multiple Choice

The J-curve effect refers to the observation that

• A) the trade balance usually gets worse before it improves after a currency depreciation.
• B) GDP usually decreases before it increases after a currency appreciation.
• C) the trade balance usually gets worse before it improves after a currency appreciation.
• D) GDP usually decreases before it increases after a currency depreciation.