What Happens When the Dollar Appreciates

question 76

Multiple Choice

What happens when the dollar appreciates?

• A) Net exports increase,and aggregate demand shifts right.
• B) Net exports increase,and aggregate demand shifts left.
• C) Net exports decrease,and aggregate demand shifts right.
• D) Net exports decrease,and aggregate demand shifts left.

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Definitions:

Marginal Cost

The upsurge in total expenditure associated with the fabrication of one further unit of a good or service.

Cartel

A formal agreement among competing firms to control prices, limit output, or divide markets to gain an advantageous market position.

Industry Output

The total production or service provision by companies within a specific industry.

Industry Profit

The total earnings generated by companies within a specific industry after covering all operating costs.