If the Dollar Rises in Value Compared to Other Currencies

question 42

Multiple Choice

If the dollar rises in value compared to other currencies, what will happen in the United States?

• A)an increase in aggregate demand 
• B)an increase in aggregate supply 
• C)a decrease in aggregate supply 
• D)an increase in the U.S.price level

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Definitions:

Frustration

A negative emotional state that arises when one is blocked from achieving a desired goal or outcome.

Social Smile

A response by infants, usually beginning by about 8 weeks of age, in which they smile in reaction to other people, signaling pleasure and engagement.

Surprise

A sudden, unexpected event or piece of information that elicits a reaction ranging from shock to joy.

Restrained

Characterized by self-control or moderation in action, expression, or feeling.