If the Australian Dollar Increases in Value Relative to Other

question 105

Multiple Choice

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

• 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.

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