29. Trade Deficits and J-curve Adjustment Paths. Assume the United States has the following import/export volumes and prices. It undertakes a major "devaluation" of the dollar, say 18% on aver- age against all major trading partners' currencies. What is the pre-devaluation and post-devaluation trade balance?

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Initial (pre-devaluation) spot rate ($/foreign currency) Price of exports ($) Price of imports (foreign currency, fc) 2.00 20.00 12.00 Quantity of exports, units 100.00 Quantity of imports, units 120.00 Price elasticity of demand, imports 090