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Because of the J-Curve Effect and Partial Currency Pass-Through, a Depreciation

Question 60

Multiple Choice

Because of the J-curve effect and partial currency pass-through, a depreciation of the domestic currency tends to increase the size of a

A) trade surplus in the short run.
B) trade surplus in the long run.
C) trade deficit in the short run.
D) trade deficit in the long run.

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