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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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