Multiple Choice
What are the economic effects of a currency depreciation?
A) It will decrease aggregate demand and aggregate supply, so that output will certainly fall, and prices may fall as well.
B) It will increase aggregate demand and aggregate supply, so that output will certainly rise, and prices may rise as well.
C) It will increase aggregate demand and decrease aggregate supply, so that prices will certainly rise, and output may rise as well.
D) It will decrease aggregate demand and increase aggregate supply, so that prices will certainly fall, and output may fall as well.
Correct Answer:
Verified
Correct Answer:
Verified
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