Why do exports increase in the long-run when currency depreciates, according to the J-curve? OA. because the demand for exports adjusts B. because the PPP theory suggests that the exchange rate cannot depreciate in the long run C. because exchange rate depreciation will lead to inflation in the long run D. because the demand for currency in the long run will fall more than in the short run
Why do exports increase in the long-run when currency depreciates, according to the J-curve? OA. because the demand for exports adjusts B. because the PPP theory suggests that the exchange rate cannot depreciate in the long run C. because exchange rate depreciation will lead to inflation in the long run D. because the demand for currency in the long run will fall more than in the short run
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section13.2: The Prices For International Transactions: Real And Nominal Exchange Rates
Problem 2QQ
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