All other things being equal,a depreciation of the domestic currency will cause aggregate demand to increase.

Question

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When a domestic currency depreciates, imports become more expensive, making domestically produced goods relatively cheaper. This encourages consumers to buy more domestic products, which in turn increases aggregate demand. Additionally, exports become more competitive, as foreign buyers can purchase more of the goods for the same amount of foreign currency. This leads to an increase in exports, which also contributes to an increase in aggregate demand. Therefore, a depreciation of the domestic currency causes aggregate demand to increase.

All Other Things Being Equal,a Depreciation of the Domestic Currency