The J-curve effect that results from currency depreciation results is due to
A) the initial effect having positive effects on the current account balance.
B) the value of imports increasing by more than the value of exports at the time of devaluation.
C) exports and imports being totally unresponsive to changes in exchange rates.
D) decreases in the dollar price of imports.
B
Economics
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a. True b. False
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Indicate whether the statement is true or false
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