Suppose that the Japanese yen appreciates significantly at some point, thus making Japanese imports more expensive. Japanese exporters may lower their profit margins to reduce the effect of the yen appreciation on U.S.
importers, producing a phenomenon known as A) the J-curve.
B) the absorption effect.
C) pricing to market.
D) international reserves compliance.
Question 2
The current account balance of the United States began to deteriorate in
A) the late 1960s.
B) the early 1970s.
C) the early 1980s.
D) the late 1980s.
E) the early 1990s.
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