What theory holds that a country's trade deficit worsens just after its currency depreciates because price effects will dominate the effect on volume of imports in the short run?

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The J-curve theory holds that a country's trade deficit will initially worsen (J-curve effect) just after its currency depreciates because price effects, such as increased cost of imports, will dominate the effect on volume of imports in the short run. Over time, as exports become more competitive and import demand decreases, the trade deficit may eventually improve.

What Theory Holds That a Country's Trade Deficit Worsens Just