When the Value of the Dollar Increases, the Net Effect

question 62

Multiple Choice

When the value of the dollar increases, the net effect on the economy

• A) will be an increase in short-run aggregate supply and a decrease in aggregate demand.
• B) will be decrease in short-run aggregate supply and an increase in aggregate demand.
• C) will be an increase in both aggregate demand and aggregate supply.
• D) will be a decrease in both aggregate demand and aggregate supply.

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Definitions:

Less Expensive

Referring to an option that costs less money than others or is relatively cheap.

Group Dynamics

The study of the behaviors and psychological processes occurring within a social group or between social groups.

Maintenance Role

In group dynamics, this refers to actions and behaviors a group member exhibits to support the emotional life and cohesion of the group.

Harmonizing

The process of making things compatible or consistent; reducing conflict or disagreement among elements to create a coherent whole.