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2006-07-03

The J-curve effect explains that after a currency depreciation( )

a. price effects are stronger in the short run; volume effects are stronger in the long run

b. price effects are outweighed by volume effects in both the short and long runs

c. volume effects are outweighed by price effects in the long run but not in the short run

d. net exports ultimately will not suffer as the price effects and the volume effects will offset each other exactly in the long run

e. net exports will suffer in the long run as the price effects become zero

谢谢各位~

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