A decrease in aggregate demand is likely to result from:
A) a decrease in the price level.
B) an increase in the price level.
C) an appreciation in the value of the U.S. dollar.
D) a decrease in the excess capacity of factories.

Question

Quizplus · Accepted Answer

An appreciation in the value of the U.S. dollar makes U.S. goods more expensive for foreign buyers, reducing exports and thus decreasing aggregate demand.

A Decrease in Aggregate Demand Is Likely to Result From