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 103 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
Excellent

sailorcrescent

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

A, Basic IV administration set; A, Basic IV administration set;
Effect of BPG on oxygen binding to hemoglobin. The BPG concentration Effect of BPG on oxygen binding to hemoglobin. The BPG concentration
The adsorption spectrum of rhodopsin compared with the human scotopic spectral sensitivity curve. The adsorption spectrum of rhodopsin compared with the human scotopic spectral sensitivity curve.
De novo and maintenance methylation of DNA and the effect of 5’-azacytidine upon DNA methylation De novo and maintenance methylation of DNA and the effect of 5’-azacytidine upon DNA methylation
Effect of Phosphate Pollution Effect of Phosphate Pollution
Stem-lengthening effect of gibberellins. Stem-lengthening effect of gibberellins.
Video: Amniocentesis and CVS Animation

For a complete list of videos, visit our video library