If the dollar appreciates in value relative to foreign currencies:
A. Aggregate demand decreases because C decreases
B. Aggregate demand increases because C increases
C. Aggregate demand decreases because net exports decrease
D. Aggregate demand increases because net exports increase
C. Aggregate demand decreases because net exports decrease
Economics
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Which of the following is NOT true for a perfectly competitive firm in the long run?
A) MR = MC B) MC > LAC C) Price = MC D) SAC = LAC
Economics
Assume the nominal dollar-per-euro ($/€) exchange rate appreciates by 2%, U.S. prices rise by 5% and Euro-Area prices rise by 3%. By approximately how much does the real exchange rate change?
a. 2% b. There is no change. c. 3% d. 4% e. 5%
Economics