An appreciation of the U.S.dollar tends to __________ U.S.net exports and shift the U.S.AD curve to the __________.
A) raise; right
B) raise; left
C) lower; right
D) lower; left

Question

Quizplus · Accepted Answer

An appreciation of the U.S. dollar means that the value of the U.S. dollar increases relative to other currencies, making U.S. exports more expensive for foreign buyers and imports cheaper for U.S. consumers. This leads to a decrease in U.S. net exports and a shift of the U.S. AD curve to the left. Therefore, the best choice is D, lower; left.

An Appreciation of the U