Suppose That Last Year $1 U

question 91

Multiple Choice

Suppose that last year $1 U.S. exchanged for 1.35 euros. If this year $1 exchanges for 1.25 euros, then we can conclude that

• A) the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the left.
• B) the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) to shift to the right.
• C) the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the left.
• D) the dollar is weaker this year than it was last year but this will have no impact on the United States' short-run aggregate supply (SRAS) curve.