What Is the Likely Result from a Depreciation of a Nation's

question 41

Multiple Choice

What is the likely result from a depreciation of a nation's currency when its economy is operating at its full-employment level of output?

• A)net exports fall and contribute to demand-pull inflation
• B)net exports rise and contribute to demand-pull inflation
• C)net exports fall, but equilibrium GDP rises
• D)net exports rise, but equilibrium GDP falls

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