(Answered) Depreciation of a nation currency

Management Studies

Question:

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?

Net exports fall and contribute to demand-pull inflation. Net exports rise and contribute to demand-pull inflation. Net exports fall, but equilibrium GDP rises. Net exports rise, but equilibrium GDP falls.

Provide support for your position.

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