For This Question, Assume That All Price Levels Are Fixed

Multiple Choice

For this question, assume that all price levels are fixed. Now suppose that there is a real exchange rate depreciation. This real depreciation will cause which of the following to occur?

A) A decrease in net exports.
B) A decrease in exports.
C) An increase in net exports.
D) An increase in imports.
E) A decrease in demand for domestic output.