What is the correct label for the vertical axis in the J-curve?
A)Time
B)Change in the Trade Balance
C)Size of Trade Balance
D)Size of Merchandise Trade Balance

Question

What is the correct label for the vertical axis in the J-curve? 
A)Time 
B)Change in the Trade Balance 
C)Size of Trade Balance 
D)Size of Merchandise Trade Balance

Quizplus · Accepted Answer

The J-curve illustrates the impact of exchange rate changes on a country's trade balance, and the vertical axis measures the change in the trade balance, making B the correct label for the axis. A measures time, while C and D measure the size of the trade balance, which are not the appropriate variables for the J-curve graph.

What Is the Correct Label for the Vertical Axis in the J-Curve