If the Dollar Appreciates,how Will Aggregate Demand in the United

question 238

Multiple Choice

If the dollar appreciates,how will aggregate demand in the United States be affected?

• A)Aggregate demand will increase as exports increase and imports decrease.
• B)Aggregate demand will increase as imports increase and exports decrease.
• C)Aggregate demand will decrease as imports increase and exports decrease.
• D)Aggregate demand will decrease as exports increase and imports decrease.

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Definitions:

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government considered a low-risk investment.

Price-Earnings Ratio

A valuation metric comparing a company’s current share price to its per-share earnings, indicating the market's expectations of growth.

Earnings Per Share

A financial metric calculated by dividing the net earnings available to common shareholders by the average outstanding shares.

Closing Price

The final price at which a security is traded on a given trading day, often used for performance assessment.