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Duplicate of IB Economics International/Development Flashcards | StudBud
Duplicate of IB Economics International/Development
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Which is the best explanation for the J Curve effect following currency depreciation?
A
Consumers and producers react very quickly
B
Over time, demand becomes more price elastic
C
Demand for exports is very price elastic in the short run.
D
Fluctuating exchange rates lead to automatic BOP adjustment
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