All other things being unchanged,a decrease in the value of the dollar against the euro _____ Canadian net exports and shifts the aggregate demand curve to the _____.

Question

Quizplus · Accepted Answer

A decrease in the value of the dollar against the euro increases Canadian net exports since Canadian goods and services become comparatively cheaper for European buyers. This increase in net exports leads to an increase in aggregate demand, shifting the aggregate demand curve to the right.

All Other Things Being Unchanged,a Decrease in the Value of the Dollar