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
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter31: Open-Economy Macroeconomics: Basic Concepts
Section31.2: The Price For International transaction: Real And Nominal Exchange Rate
Problem 2QQ
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