This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The basic assumption behind the J-curve effect is that A) supply and demand for currencies are ... (Read 51 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
on: Jun 30, 2018
The basic assumption behind the J-curve effect is that
 
  A) supply and demand for currencies are less elastic in the short run than in the long run.
  B) in the short run, supply will exceed demand; in the long run, they will be equal.
  C) an overshooting effect occurs as people adjust to the new information.
  D) investors tend to be overly cautious in currency instruments.

Question 2

The use of an absorption instrument allows a government to
 
  A) increase or decrease national absorption.
  B) change the balance between imports and exports.
  C) alter the balance of payments with a specific country.
  D) reduce the influence of domestic absorption on exchange rates.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

wfdfwc23

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

A


CharlieWard

  • Member
  • Posts: 578
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

nathang24

  • Member
  • Posts: 314
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of
First-pass effect. First-pass effect.
A demand delivery system uses a fuel-pressure regulator attached to the fuel pump assembly inside ... A demand delivery system uses a fuel-pressure regulator attached to the fuel pump assembly inside ...
Basic massage practice office area. Basic massage practice office area.
Basic process of metabolic profiling Basic process of metabolic profiling
Effect of Education on Wages Effect of Education on Wages
Video: Evolutionary tree of life Animation

For a complete list of videos, visit our video library