The "J-curve effect"
A)happens most of the time,in the short run.
B)only occurs in about 40 percent of cases,according to a study by Sebastian Edwards.
C)is a long-run phenomenon,not a short-run one.
D)none of the options

Question

Quizplus · Accepted Answer

The "J-curve effect" refers to the short-term deterioration followed by a long-term improvement in a country's trade balance after a devaluation or depreciation of its currency. According to a study by Sebastian Edwards, it only occurs in about 40 percent of cases.

The "J-Curve Effect