Economic populist policies usually lead to overvalued exchange rates and large trade deficits because

A. populist policies involve large increases in government expenditures paid for by printing money (usually becau ultimately, this leads to rapid inflation.
B. domestic prices increase faster than the depreciation of the nominal exchange rate; the real rate must apprecia
C. appreciating exchange rates lead to overvaluation and large import flows together with a decline in exports.
D. All of the above.
E. A and B only.