​The "J-Curve" Effect Describes

Multiple Choice

​The "J-curve" effect describes:

A) ​the continuous long-term inverse relationship between a country's current account balance and the country's growth in gross domestic product.
B) ​the short-run tendency for a country's balance of trade to deteriorate even while its currency is depreciating.
C) ​the tendency for exporters to initially reduce the price of goods when their own currency appreciates.
D) ​the tendency of a country's currency to initially depreciate after the country's inflation rate declines.
Answer Key