In the short run following a depreciation of the dollar,the United States may move downward along the J-curve since it is likely that the United States

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A depreciation of the dollar means that the dollar is worth less compared to other currencies, making imports more expensive. In the short run, the United States may continue importing the same amount of goods, but at a higher cost due to the weaker dollar. This means that the United States will spend more dollars on imports, moving downward along the J-curve.

In the Short Run Following a Depreciation of the Dollar,the