Question
according to the J-curve concept, there are multiple potential outcomes on the balance of payments from a currency depreciation. Which of the following is not
according to the J-curve concept, there are multiple potential outcomes on the balance of payments from a currency depreciation. Which of the following is not one of those outcomes
a. the effects of a currency depreciation are transmitted primarily via the income adjusted mechanism
b. the effects of a currency depreciation are likely to be adverse or negative in the short run.
c. in the long run, the effects of a currency depreciation are likely to be positive given favorable elasticity conditions
d. the effects of a currency depreciation may be influenced by offsetting devaluations made by other countries
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