The shape of the curve that shows the effect of a currency depreciation upon a country's current account balance over time, with the curve itself being known as the ______, reflects the fact that short run demand elasticities are _____ than the long run elasticites. (Ignore the negative sign on the elasticities.) a. J curve / higher b. J curve /lower c. supply curve of foreign exchange /lower d. supply curve of foreign exchange / higher
The shape of the curve that shows the effect of a currency depreciation upon a country's current account balance over time, with the curve itself being known as the ______, reflects the fact that short run demand elasticities are _____ than the long run elasticites. (Ignore the negative sign on the elasticities.) a. J curve / higher b. J curve /lower c. supply curve of foreign exchange /lower d. supply curve of foreign exchange / higher
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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PQ 9
The shape of the curve that shows the effect of a currency
a. J curve / higher
b. J curve /lower
c. supply curve of foreign exchange /lower
d. supply curve of foreign exchange / higher
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