All Other Things Unchanged, an Decrease in the Value of the Dollar

question 54

Multiple Choice

All other things unchanged, an decrease in the value of the dollar against the euro

• A) increases U.S. net exports and shifts the investment demand curve to the right.
• B) decreases U.S. net exports and shifts the investment demand curve to the right.
• C) increases U.S. net exports and shifts the aggregate demand curve to the right.
• D) decreases U.S. net exports and shifts the aggregate demand curve to the left.

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Definitions:

Debts

Money, goods, or services owed by one party to another under the terms of a contract or agreement.

Garnishments

A legal process whereby a creditor can collect what a debtor owes by requiring a third party to turn over the debtor’s property or wages.

Creditors

Individuals or institutions that lend money or extend credit and are owed repayment by debtors.

Involuntary Bankruptcy

A legal proceeding initiated by creditors against a debtor who fails to pay owed amounts, forcing the debtor into bankruptcy to satisfy debts.