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Saudi Electronic University How Currency Depreciation Stimulates Exports Discussion

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Module 12: Critical Thinking

Critical Thinking: Currency Depreciation (130 Points)

In a critical essay, analyze how currency depreciation stimulates exports. Evaluate the three major approaches to analyzing the economic impact of currency depreciation: the elasticities approach, the absorption approach, and the monetary approach. Compare and contrast the three approaches and provide examples that distinguish them from each other.