In a two-country world,the depreciation of the domestic currency shifts
A) the AD curve rightward and the SRAS curve leftward.
B) the AD curve leftward and the SRAS curve rightward.
C) both the AD curve and the SRAS curve rightward.
D) both the AD curve and the SRAS curve leftward.
E) the AD curve rightward and does not affect the SRAS curve.
Correct Answer:
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