Suppose the U

question 307

Multiple Choice

Suppose the U.S. dollar gains strength against the euro (and against other major currencies) . This strengthening of the dollar will cause which of the following to occur?

• A) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the right.
• B) The aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the right.
• C) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the left.
• D) the aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the left.

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Definitions:

Interest on Interest

The concept of earning interest on the reinvestment of previous interest payments, a compound interest phenomena.

Average Annual Interest Rate

The average amount of interest earned or paid on an investment or loan over a one-year period, expressed as a percentage.

Investments

Resources or possessions obtained with the intention of creating income or growing in value over time.

Average Annual Interest Rate

This refers to the weighted average of all the interest rates applied to a loan or financial product, averaged over a year.