A country is running a $300 million deficit on the current account of its balance of payments. It devalues its currency in an effort to cut the deficit. Which row best matches the view that the J-curve applies in the short run, whereas the Marshall-Lerner condition holds in the long run?
- Ashort-run deficit 200, long-run deficit 100
- Bshort-run deficit 200, long-run deficit 400
- Cshort-run deficit 600, long-run deficit 100
- Dshort-run deficit 600, long-run deficit 400