Economics · International Economics
The J-curve effect in international economics represents the phenomenon of:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1An immediate net improvement in trade balance after currency appreciation
- 2A trade balance deterioration resulting from currency appreciation
- 3An initial deterioration followed by a net improvement in a country's trade balance resulting from a currency devaluation or depreciation✓
- 4An initial improvement followed by a sustained deterioration in a country's trade balance after currency devaluation
Correct answer
An initial deterioration followed by a net improvement in a country's trade balance resulting from a currency devaluation or depreciation
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