If the Dollar Appreciates Because of Speculation or Government Policy

question 227

Multiple Choice

If the dollar appreciates because of speculation or government policy U.S.

• A)aggregate demand shifts left. U.S. aggregate demand also shifts left if other countries experience recessions.
• B)aggregate demand shifts left. U.S. aggregate demand shifts right if other countries experience recessions.
• C)aggregate demand shifts right. U.S. aggregate demand also shifts right if other countries experience recessions.
• D)aggregate demand shifts right. U.S. aggregate demand shifts left if other countries experience recessions.

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Definitions:

Money Supply

The sum total of economic assets in monetary form at a specific time.

U.S. Treasury Bills

Short-term government securities issued by the United States Department of the Treasury with maturity periods typically less than a year, considered low-risk investments.

Small Time Deposits

Bank deposits that have a fixed term or maturity date, typically with smaller deposit amounts and shorter durations.

Demand Deposits

Bank accounts that allow the account holder to withdraw funds without prior notification, such as checking accounts.