Everything else held constant,an appreciation of the domestic currency will cause the IS curve to shift to the ________ and aggregate demand will ________.
A)right;increase
B)right;decrease
C)left;increase
D)left;decrease

Question

Quizplus · Accepted Answer

An appreciation of the domestic currency will cause the IS curve to shift to the left because it will lead to a decrease in net exports, decreasing aggregate demand. Therefore, aggregate demand will decrease.

Everything Else Held Constant,an Appreciation of the Domestic Currency Will