If a currency depreciates,a country's net exports
A)fall and AD increases.
B)rise and AD increases.
C)fall and AD decreases.
D)rise and AD decreases.

Question

Quizplus · Accepted Answer

If a currency depreciates, it becomes cheaper relative to other currencies, which makes exports cheaper for foreign buyers. This leads to an increase in net exports, which will increase aggregate demand (AD) as well.

If a Currency Depreciates,a Country's Net Exports