Other things equal, an appreciation of the U.S. dollar would:
A) Increase productivity and increase aggregate supply
B) Decrease net exports and decrease aggregate demand
C) Increase the prices of imported resources and decrease aggregate supply
D) Decrease the supply of money and decrease aggregate demand

Question

Quizplus · Accepted Answer

An appreciation of the U.S. dollar would make U.S. exports relatively more expensive, thus decreasing net exports (exports minus imports) and decreasing aggregate demand.

Other Things Equal, an Appreciation of the U