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J curve

• Theory that says a country's trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short-run.

 
 Embedded terms in definition
 Currency
Deficit
Foreign
Its
Offset
Prices
Trade
Volume
Will
 
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<< J January effect >>

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Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great. - Mark Twain (1835-1910)

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