All else held constant, which of the following is a necessary consequence of a depreciation of the U.S. dollar against other currencies?
A. U.S. exports will become cheaper relative to other nations' products.
B. The terms of trade will move in favor of the United States.
C. The United States will experience an increase in the volume of imports.
D. International speculators will buy U.S. dollars and sell other currencies.
Answer: A
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