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. GDP usually decreases before it increases after a currency depreciation.
D. the trade balance usually gets worse before it improves after a currency appreciation.
Answer: A
You might also like to view...
If the demand curve for bottled water shifts leftward and the supply curve of bottled water shifts leftward, the equilibrium
A) price of bottled water definitely increases. B) price of bottled water definitely decreases. C) quantity of bottled water definitely increases. D) quantity of bottled water definitely decreases.
Events of the 1970s and early 1980s showed that
A) the Phillips curve presents policymakers with a stable menu of choices. B) cycles of unemployment and inflation rates appear to have gravitated around a 6 percent unemployment rate. C) lower inflation rates are consistently accompanied by higher unemployment rates. D) a tradeoff between inflation and unemployment may not always exist. E) a and c
The lowest point on the firm's long-run supply curve is
A. the shutdown point. B. the break-even point. C. between the shutdown point and the break-even point. D. None of the choices are the lowest point on the firm's long-run supply curve.
An employer retirement plan that provides a predetermined monthly amount of income when you retire is called a
A. defined contribution plan. B. defined benefit plan. C. 401(k) plan. D. Social Security plan.