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

Multiple Choice

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

A) Net exports would fall and contribute to demand-pull inflation.
B) Net exports would rise and contribute to demand-pull inflation.
C) Net exports would fall, but equilibrium GDP would rise.
D) Net exports would rise, but equilibrium GDP would fall.