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? 2.06 20.8600 12.9800 Initial spot exchange rate, $/fc Price of exports, dollars ($) Price of imports, foreign currency (fc) Quantity of exports, units Quantity of imports, units Percentage devaluation of the dollar 140 160 16.00 What is the pre-devaluation trade balance? The revenues from exports are $ (Round to the nearest cent.) The expenditures on imports in foreign currency are fc (Round to two decimal places.) The expenditures on imports in U.S. dollars are $. (Round to the nearest cent.) Calculate the pre-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) Pre-devaluation trade balance $ Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars fc $ Pre-devaluation trade balance $ The new spot exchange rate after devaluation is $/fc . (Round to four decimal places.) The new expenditures on imports in U.S. dollars are $ (Round to the nearest cent.) Calculate the post-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) Post-devaluation trade balance $ fc Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Post-devaluation trade balance