The Exchange Rate Last Year Was $1 = 1

question 358

Multiple Choice

The exchange rate last year was $1 = 1.1 euros. This year it is $1 = 1.2 euros. We can say that the value of the dollar

• A) fell; causing net exports to increase and aggregate demand to rise.
• B) fell; causing net exports to decrease and aggregate demand to fall.
• C) increased; causing net exports to decrease and aggregate demand to fall.
• D) increased; causing net exports to decrease and aggregate demand to rise.

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Definitions:

Counterarguments

Arguments presented in opposition to another argument, offering a different perspective or rebuttal.

Primacy Effect

The tendency to remember information that is presented first better than information that is presented later.

Persuasion

The process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through argument, reasoning, or appeal.

Attitude Accessibility

How easily an attitude can be activated in someone's mind, affecting the speed and strength with which it influences their responses and behavior.