The J-curve effect that results from currency depreciation results is due to Group of answer choices exports and imports being totally unresponsive to changes in exchange rates. decreases in the dollar price of imports. the initial effect having positive effects on the current account balance. the value of imports increasing by more than the value of exports at the time of devaluation. PreviousNext

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase