The Effect of a Change in the Value of the Dollar

question 72

True/False

The effect of a change in the value of the dollar in the foreign exchange market due to a change in the price level helps explain the slope of aggregate demand, but does not shift it. The effects of a change in the value of the dollar in the foreign exchange market due to speculation is shown by shifting the aggregate demand curve.

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Definitions:

Reconstruction

An account of an event that has been pieced together from a few highlights.

Bartlett

Frederic Bartlett, a psychologist who is known for his work on memory and cognitive psychology, particularly for his theory of reconstructive memory.

Morgan

A reference that could imply various contexts; in psychology, it might refer to John Morgan and his contributions to behavioral psychology.

Penfield

Wilder Penfield was a pioneering neurosurgeon and researcher whose stimulation of the human brain cortex led to important discoveries in epilepsy treatment and the mapping of brain functions.