Question

The J-curve effect that results from currency depreciation results is due to Group of answer choices exports and imports being totally unresponsive to changes in exchange rates. decreases in the dollar price of imports. the initial effect having positive effects on the current account balance. the value of imports increasing by more than the value of exports at the time of devaluation. PreviousNext

Answer 1

Answer:

the value of imports increasing by more than the value of exports at the time of devaluation.

Explanation:

J-curve effect means the starting depreciation effect based on the balance of trade that should be negative also when the imports and the exports adjusted on the long run with respect to the changes made in the prices so the net effect should be positive

So as per the given situation, the above should be the answer