All other things unchanged, an increase in the value of the dollar against the euro _____ U.S. net exports and shifts the aggregate demand curve to the _____.

Question

Quizplus · Accepted Answer

When the value of the dollar increases against the euro, U.S. goods become more expensive for Europeans, leading to a decrease in U.S. exports. This decrease in net exports shifts the aggregate demand curve to the left.

All Other Things Unchanged, an Increase in the Value of the Dollar