The J-curve effect received wide attention when
A)the British trade balance worsened after a strengthening of the pound in 1967.
B)the British trade balance worsened after a devaluation of the pound in 1967.
C)the British trade balance improved after a devaluation of the pound in 1967.
D)none of the options

Question

Quizplus · Accepted Answer

The J-curve effect became widely recognized when the British trade balance initially worsened following the devaluation of the pound in 1967. This phenomenon illustrates how a country's trade balance might deteriorate before improving after its currency depreciates.

The J-Curve Effect Received Wide Attention When