Suppose That Last Year $1 U

question 92

Multiple Choice

Suppose that last year $1 U.S. exchanged for 1.2 euros. If this year $1 exchanges for 1.3 euros, then we can conclude that

• A)the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS)curve to shift to the left.
• B)the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS)to shift to the right.
• C)the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS)curve to shift to the left.
• D)the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS)curve to shift to the right.

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Definitions:

Disinvestment

The process of selling off a portion of assets or withdrawal of investment capital from stocks, bonds, or businesses, often indicating a strategic or economic decision.

Public Sector

The part of the economy that is controlled by the government, encompassing public services and enterprises, including education, healthcare, and law enforcement.

Hyperinflation

An extremely high and typically accelerating inflation rate, often resulting in rapidly eroding currency values and creating economic instability.

U.S. Food for Peace Program

A government initiative aimed at combating global hunger and fostering international goodwill by providing U.S. agricultural products to countries in need.