The US Exchange Rate Rises

question 67

Multiple Choice

The U.S. exchange rate rises. As a result, there is a

• A) movement along the U.S. aggregate demand curve but the curve does not shift.
• B) rightward shift of the U.S. aggregate demand curve.
• C) leftward shift of the U.S. aggregate demand curve.
• D) rightward shift of the long-run U.S. aggregate supply curve.

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Definitions:

Investment

The allocation of resources, typically money, into an asset or venture with the expectation of generating income or profit.

Equal Investment

An investment strategy where equal amounts of capital are allocated to each asset or security in a portfolio.

Portfolio

A compilation of financial holdings comprising stocks, bonds, commodities, physical currency, and equivalents to cash, which cover mutual funds and ETFs.

Stocks

Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.