If the Dollar Appreciates Because of Speculation or Government Policy

question 227

Multiple Choice

If the dollar appreciates because of speculation or government policy U.S.

• A)aggregate demand shifts left. U.S. aggregate demand also shifts left if other countries experience recessions.
• B)aggregate demand shifts left. U.S. aggregate demand shifts right if other countries experience recessions.
• C)aggregate demand shifts right. U.S. aggregate demand also shifts right if other countries experience recessions.
• D)aggregate demand shifts right. U.S. aggregate demand shifts left if other countries experience recessions.

---

Definitions:

Contract Price

The total amount agreed upon in a contract for the sale of goods, services, or property.

Involuntary Conversion

The forced exchange of an asset into a different form or property, often due to theft, casualty or condemnation, with potential tax implications.

Deferred Gain

A profit from the sale of property or an investment that has been realized but not recognized for tax purposes in the current period.

IRC Section 121

A provision in the Internal Revenue Code that allows homeowners to exclude up to $250,000 ($500,000 if married filing jointly) of capital gains on the sale of their primary residence, subject to certain conditions.