If a country's currency depreciates, which of the following statements are likely true about its terms of trade?

 

A) The terms of trade will improve due to the decreased cost of exports.

B) The depreciation of currency does not affect the terms of trade.

C) The terms of trade will deteriorate due to the higher cost of imports.

D) The depreciation of currency will increase the purchasing power of consumers.

E) The terms of trade will improve due to the increased demand for domestically produced goods.