Economics Readings Site By Colin Ong

This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg

MCQ 2

clipped from www.bized.co.uk
The J-curve effect refers to the observation that


(Select one answer)






(a) * GDP usually decreases before it increases after a currency depreciation.

(b) * GDP usually decreases before it increases after a currency appreciation.

(c) * the trade balance usually gets worse before it improves after a currency appreciation.

(d) * the trade balance usually gets worse before it improves after a currency depreciation.
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