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Basic Question 8 of 15
According to the J-curve effect, when the exchange value of a country's currency depreciates, the country's trade balance ______
B. first moves toward surplus, then later toward deficit.
C. moves into surplus and stays there.
A. first moves toward deficit, then later toward surplus.
B. first moves toward surplus, then later toward deficit.
C. moves into surplus and stays there.
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Learning Outcome Statements
describe exchange rate regimes and explain the effects of exchange rates on countries' international trade and capital flows
CFA® 2024 Level I Curriculum, Volume 1, Module 7.