The "J-Curve Effect" Shows

The "J-curve effect" shows:

A) the initial deterioration and the eventual improvement of a country's trade balance following a currency depreciation
B) the initial improvement and the eventual depreciation of a country's trade balance following a currency depreciation
C) the trade balance's lack of responsiveness to the interest rate changes
D) short-term price elasticity of exports and imports to the change in the economic growth

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