A-LevelEconomicsInternational economic issues9708/12 · May/June 2011 · Q281 Mark

The table shows observations of the exchange rate of an economy and its current account balance over six years. Which concept does the data in the table illustrate?

Aexchange rate appreciation

Bpurchasing power parity

Cthe J-curve effect

Dtrade-weighted exchange rates

✓ Correct answer

C: the J-curve effect

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2011 Paper 1 Variant 2, question 28.

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