Problem
1. How does the J-curve effect relate to the time path of currency depreciation?
2. What implications does currency passthrough have for a nation whose currency depreciates?
3. According to the absorption approach, does it make any difference whether a nation's currency depreciates when the economy is operating at less than full capacity versus at full capacity?
4. How can currency depreciation-induced changes in household money balances promote payments equilibrium?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.