In the IS/LM/BP analysis, as a country's currency depreciates (and assuming that the Marshall-Lerner conditions holds), the country's

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According to the IS/LM/BP analysis, a currency depreciation leads to an increase in net exports, which in turn leads to an increase in the demand for domestic currency on foreign exchange markets. This shift in demand for the domestic currency leads to an increase in the supply of foreign currency, shifting the BP curve to the right.

In the IS/LM/BP Analysis, as a Country's Currency Depreciates (And