Suppose the Dollar Depreciates in Value in the Foreign Exchange

question 134

Multiple Choice

Suppose the dollar depreciates in value in the foreign exchange markets. What is the impact on U.S.Real GDP?

• A) It rises because dollar depreciation shifts the U.S. AD curve rightward.
• B) It falls because dollar depreciation shifts the U.S. SRAS curve leftward.
• C) There is no effect on Real GDP since dollar depreciation does not affect either the U.S. AD or the U.S. SRAS curve.
• D) It depends on whether the U.S. AD curve shifts rightward by more or less than the U.S. SRAS curve shifts leftward.

---

Definitions:

Political Awareness

The level of understanding and concern an individual has regarding political issues, processes, and the importance of civic engagement.

Internalizing

The process of adopting the opinions or attitudes of others, particularly those considered to be societal norms or standards, as one's own.

Intimate Partner Violence

A pattern of abusive behavior in any relationship that is used by one partner to gain or maintain power and control over another intimate partner.

Proxy Measure

An indirect measure or indicator that approximates or represents a phenomenon in the absence of a direct measure.