What is the correct label for the vertical axis in the J-curve?
A)Time
B)Change in the Trade Balance
C)Size of Trade Balance
D)Size of Merchandise Trade Balance

Question

What is the correct label for the vertical axis in the J-curve? 
A)Time 
B)Change in the Trade Balance 
C)Size of Trade Balance 
D)Size of Merchandise Trade Balance

Quizplus · Accepted Answer

The J-curve illustrates the relationship between a country's currency depreciation and its trade balance. The vertical axis represents the change in the trade balance, measured as the difference between exports and imports. Therefore, the correct label for the vertical axis is the "Change in the Trade Balance." The other choices are incorrect as they do not capture the essence of the J-curve.

What Is the Correct Label for the Vertical Axis in the J-Curve