Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

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 ______

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.

User Contributed Comments 0

You need to log in first to add your comment.
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh

Craig Baugh

Learning Outcome Statements

describe exchange rate regimes and explain the effects of exchange rates on countries' international trade and capital flows

CFA® 2025 Level I Curriculum, Volume 1, Module 7.