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The Rapid Depreciation in the Dollar from 1985 to 1987

Question 30

Multiple Choice

The rapid depreciation in the dollar from 1985 to 1987 caused net exports during this period


A) to rise as the J curve would have predicted, but with a short lag (less than one year) .
B) to rise as the J curve would have predicted, but with a long lag (more than one year) .
C) to fall as the J curve would have predicted, but with a short lag (less than one year) .
D) to fall as the J curve would have predicted, but with a long lag (more than one year) .

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