What would the likely impact of a depreciation of the domestic currency be on the level of output and income and the trade balance? A. The domestic level of output and income will increase, and there will be a deterioration of the trade balance. B. The domestic level of output and income will decrease, and there will be a deterioration of the trade balance. C. The domestic level of output and income will increase, and there will be an improvement of the trade balance. D. The domestic level of output and income will decrease, and there will be an improvement of the trade balance.

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