Suppose the Euro Appreciates Against the Dollar

question 137

Multiple Choice

Suppose the euro appreciates against the dollar. This causes U.S. exports to become less expensive for consumers in the European Union, which would likely cause the U.S.

• A) aggregate supply to shift leftward.
• B) aggregate supply to shift rightward.
• C) aggregate demand to shift leftward.
• D) aggregate demand to shift rightward.

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Definitions:

Tax

An obligatory fiscal contribution or another kind of tax levied on an individual by a government authority to support government budgets and various public spending.

Price Paid

The amount of money that is exchanged for a good or service.

Sellers

Individuals or entities that offer goods or services in exchange for payment or other compensation.

Rent Control

A government policy or regulation that sets a maximum price landlords can charge for rent, aimed at making housing more affordable.