The J-curve effect of a 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.
E) None of the above.
B
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The marginal revenue curve is the same as the demand curve for the
a. monopolistic competitor b. perfect price discriminator c. oligopolistic price leader d. single price monopoly e. export producer
If there is a surplus of loanable funds, the quantity demanded is
a. greater than the quantity supplied and the interest rate will rise. b. greater than the quantity supplied and the interest rate will fall. c. less than the quantity supplied and the interest rate will rise. d. less than the quantity supplied and the interest rate will fall.