If the Dollar Appreciates in Value Relative to Foreign Currencies

question 11

Multiple Choice

If the dollar appreciates in value relative to foreign currencies:

• A) Aggregate demand decreases because C decreases
• B) Aggregate demand increases because C increases
• C) Aggregate demand decreases because net exports decrease
• D) Aggregate demand increases because net exports increase

---

Definitions:

Displacement

In psychology, displacement is a defense mechanism that involves shifting feelings from an uncomfortable or threatening target to a more acceptable or less threatening one.

Consolidation

The neurological process by which memories become stabilized and stored in long-term memory after initial acquisition.

Decoding

The process of interpreting and understanding communication symbols and texts, often used in the context of reading and language comprehension.

Partial Report Method

A technique in cognitive psychology where participants are only asked to recall a subset of the stimuli presented, improving recall accuracy.