If the dollar appreciates because of speculation or government policy
A)or if other countries experience recessions, aggregate demand shifts right in the United States.
B)or if other countries experience recessions, aggregate demand shifts left in the United States.
C)aggregate demand shifts right in the United States.If other countries experience recessions aggregate demand shifts left in the United States.
D)aggregate demand shifts left in the United States.If other countries experience recessions aggregate demand shifts right in the United States.

Question

Quizplus · Accepted Answer

If the dollar appreciates because of speculation or government policy, it means that the value of the dollar has increased compared to other currencies. This will make imports cheaper and exports more expensive, leading to a decrease in net exports. As a result, aggregate demand shifts left in the United States. Additionally, if other countries experience recessions, their demand for U.S. goods and services will decrease, further decreasing net exports and shifting aggregate demand left.

If the Dollar Appreciates Because of Speculation or Government Policy