Which of the following statements about the elasticities and absorption approaches to explaining the impact of exchange rate changes on trade deficits is most accurate？

A. Both the elasticities and absorption approaches consider trade and capital flows
B. Under the elasticities approach, currency depreciation will result in greater improvement in the trade deficit when either import or export demand becomes more elastic
C. Under the absorption approach, depreciation of the domestic currency will improve a trade deficit if it increases national expenditures relative to income