If the United States buys inputs from France and the dollar appreciates relative to the euro,then Americans will have to pay ________________ for foreign inputs,and the U.S.SRAS curve will shift __________________.

Question

Quizplus · Accepted Answer

If the dollar appreciates relative to the euro, then Americans will have to pay less for foreign inputs because their currency now has more purchasing power. As a result, the U.S. SRAS curve will shift rightward because firms will be able to produce more goods and services at every price level due to the availability of cheaper inputs.

If the United States Buys Inputs from France and the Dollar