Which of the following statements is part of an accurate explanation of how an increase in the value of the dollar could lead to a reduction in GDP in the United States?
A) As the value of the dollar climbs, so do net exports.
B) Higher net exports produce lower interest rates by movement along an LM curve.
C) Movement along an LM curve toward lower interest rates corresponds to lower levels of GDP.
D) All of the above are accurate parts of the explanation.
E) None of the above can be an accurate part of the explanation, because the statement is false.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is part of an accurate explanation of how an increase in the value of the dollar could lead to a reduction in GDP in the United States?
A) As the value of the dollar climbs, so do net exports.
B) Higher net exports produce lower interest rates by movement along an LM curve.
C) Movement along an LM curve toward lower interest rates corresponds to lower levels of GDP.
D) All of the above are accurate parts of the explanation.
E) None of the above can be an accurate part of the explanation, because the statement is false.

Which of the Following Statements Is Part of an Accurate