Other Things Being Equal, a Depreciation of the Dollar

question 90

Multiple Choice

Other things being equal, a depreciation of the dollar

• A) increases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources.
• B) increases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources.
• C) decreases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources.
• D) decreases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources.

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