Of the following, which is NOT a part of J-Curve adjustment path?
A) the currency contract period
B) the exchange rate pass-through period
C) the quantity adjustment period
D) Each of the above is part of the J-Curve adjustment path.

Question

Quizplus · Accepted Answer

Each option listed (A, B, and C) represents a phase or aspect of the J-Curve adjustment path, which describes the expected effects on a country's trade balance following a depreciation or devaluation of its currency. Initially, the trade balance might deteriorate before improving over time through various stages, including the currency contract period, the exchange rate pass-through period, and the quantity adjustment period.

Of the Following, Which Is NOT a Part of J-Curve