If the international value of the dollar rises, the
A)aggregate demand curve will shift inward.
B)aggregate supply curve will shift outward.
C)U.S.price level will fall.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When the international value of the dollar rises, U.S. goods become more expensive for foreign buyers, reducing exports and shifting the aggregate demand curve inward. The stronger dollar can also lower import costs, potentially shifting the aggregate supply curve outward. Both effects can contribute to a lower U.S. price level.

If the International Value of the Dollar Rises, the