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181 When the supply curve slopes upwards the foreign exchange market may be unstable. Открыть
182 Because import demand elasticities are larger in the short run than in the long run, instability is more likely in the short run than the long run. Открыть
183 The same conditions that cause short-run instability and long-run stability result in a J curve. The J curve shows that a depreciation can temporarily worsen the balance of trade, while an appreciation can temporarily improve the balance of trade. Открыть
184 A country's balance of payments accounts record is Открыть
185 The phenomenon of an initial worsening and subsequent improvement of the trade balance after a depreciation is known as the J-curve effect. Открыть
186 The law of one price states that a commodity will have the … price in terms of a common currency in every country. Открыть
187 The law follows from commodity arbitrage, which involves buying in the … country if prices are different. Открыть
188 It follows from the law of one price that the dollar price of a commodity in the United States … the pound price of the commodity in Britain multiplied by the spot exchange rate of dollars per British pound. Открыть
189 Deviations from this relationship can be caused by transportation costs and … tariffs. Открыть
190 The principle of PPP is the extension of the law of one price to prices of a basket of goods. In its absolute form, PPP says that the dollar price of a basket of goods in the United States is the pound price of the basket in Britain, … by the exchange rate of dollars per pound. Открыть