When the Value of the Dollar Increases, the Net Effect

question 62

Multiple Choice

When the value of the dollar increases, the net effect on the economy

• A) will be an increase in short-run aggregate supply and a decrease in aggregate demand.
• B) will be decrease in short-run aggregate supply and an increase in aggregate demand.
• C) will be an increase in both aggregate demand and aggregate supply.
• D) will be a decrease in both aggregate demand and aggregate supply.

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Definitions:

Attitudes

A settled way of thinking or feeling about something, typically reflected in a person's behavior or actions.

Influences

Forces or factors that have an effect on the actions, behavior, opinions, or development of someone or something.

Mere Exposure Effect

An effect that occurs when people hold a positive attitude toward a stimulus simply because they have been exposed to it repeatedly.

Classical Music

A genre of music that spans a period from roughly the 11th century to the present day, characterized by its complex structure and written in musical notation.