The J curve effect in reference to the trade balance may persist:
A) for up to one year after the depreciation.
B) permanently.
C) for a few weeks only.
D) for up to 10 years after the depreciation.

Question

Quizplus · Accepted Answer

The J curve effect typically persists for a short to medium term, often up to one year, as it takes time for the trade balance to initially worsen and then improve following a currency depreciation.

The J Curve Effect in Reference to the Trade Balance