According to the J-curve concept,which of the following is false--that the effects of a currency depreciation on the balance of payments are:
A) Transmitted primarily via the income adjusted mechanism
B) Likely to be adverse or negative in the short run
C) In the long run positive,given favorable elasticity conditions
D) Influenced by offsetting devaluations made by other countries

Question

Quizplus · Accepted Answer

The J-curve concept suggests that the effects of a currency depreciation are transmitted primarily via the price mechanism, not the income-adjusted mechanism.

According to the J-Curve Concept,which of the Following Is False--That