which of the following is INCORRECT regarding impact of depreciation on level of output and income and trade balance

-if the marshal Lerner Condition holds the positive effect of an increase in exports on the trade balance outstrips the negative effect of an increase in imports which results from an increase in output and income

-the increase in the relative price of imports causes switching of expenditure from foreigner goods which are now more expensive to domestically produced goods this results in a higher demand for domestic goods and a higher level of output and income

-the lower price of exports causes and increase in exports which in turn increases the demand for domestic goods as well as the level of output and income

-there will be a downward movement along the nx curve and a trade surplus occurs