If the Canadian Dollar Increases in Value Relative to Other

question 95

Multiple Choice

If the Canadian dollar increases in value relative to other currencies, how does this affect the aggregate demand curve?

• A)This will move the economy up along a stationary aggregate demand curve.
• B)This will move the economy down along a stationary aggregate demand curve.
• C)This will shift the aggregate demand curve to the left.
• D)This will shift the aggregate demand curve to the right.
• E)This will shift the aggregate supply curve to the left as the result of foreign direct investment.

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Definitions:

Direct Costs

Expenses that can be directly tied to the production of specific goods or services, such as materials and labor costs.

Psychological Cost

Psychological cost encompasses the mental and emotional strain or stress that individuals might incur as a result of their work environment or job demands.

Employee Perceptions

Employee perceptions represent how employees view or interpret actions, policies, and the overall environment within their workplace, which can significantly impact morale and productivity.

Organizational Change

The process through which companies undertake modifications to their structures, strategies, processes, or cultures to adapt to internal and external challenges.