Which of the following statements is correct?
I. A drop in the foreign exchange value of the dollar would decrease aggregate demand
II. A decrease in the amount of money in circulation would increase aggregate demand
A)I only
B)II only
C)Both I and II
D)Neither I nor II

Question

Quizplus · Accepted Answer

A drop in the foreign exchange value of the dollar would increase aggregate demand by making exports cheaper and imports more expensive. A decrease in the amount of money in circulation would decrease aggregate demand as there is less money available for spending.

Which of the Following Statements Is Correct