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A depreciated local currency relative to that of its trading countries will most likely decrease: Consumption...

A depreciated local currency relative to that of its trading countries will most likely decrease:

  1. Consumption

  2. Output

  3. Exports

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Answer #1

Depreciation of currency meaning the weakness of currency with respect to the other currency with which the trading is to be done.

The power os purchasing of money declines.

And this causes an effect on fewer export because people have to spend more money on the same good as compared to other nation.

So exporting decreases.

Consumption and output are related within the boundary of a country and not in trading with other countries.

So the answer is EXPORT.

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