Other things equal, if the U.S. dollar were to depreciate, the
A) aggregate demand curve would remain ﬁxed in place.
B) aggregate supply curve would shift to the left.
C) aggregate supply curve would shift to the right.
D) aggregate demand curve would shift to the left.

Question

Quizplus · Accepted Answer

A depreciation of the U.S. dollar makes imports more expensive and exports cheaper, which can increase production costs for businesses relying on imported goods, thus shifting the aggregate supply curve to the left.

Other Things Equal, If the U