This topic contains a solution. Click here to go to the answer

Author Question: The basic assumption behind the J-curve effect is that A) supply and demand for currencies are ... (Read 104 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
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
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


JaynaD87

  • Member
  • Posts: 368
Reply 3 on: Yesterday
Gracias!

 

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

For a complete list of videos, visit our video library