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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,
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 16% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance? What is the pre-devaluation trade balance? The revenues from exports are $. (Round to the nearest cent.)
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