Which event would most likely increase aggregate demand?
A) A depreciation of the dollar.
B) An appreciation of the dollar.
C) A decrease in the national incomes in foreign nations.
D) A decrease in the price level that results in a foreign purchases effect.

Question

Quizplus · Accepted Answer

A depreciation of the dollar makes exports cheaper and imports more expensive, increasing net exports and thus increasing aggregate demand.

Which Event Would Most Likely Increase Aggregate Demand