Question 1
The observation that the trade balance usually gets worse before it improves after a currency depreciation is referring to the
◦ J-curve effect.
◦ depreciation-appreciation uplink.
◦ trade imbalance postulate.
◦ XM factor.
Question 2
________ suggests that the depreciation of a nation's currency may have an ambiguous effect on its balance of trade.
◦ The J-curve effect
◦ The depreciation-appreciation uplink
◦ The trade imbalance postulate
◦ The XM factor