Suppose the dollar depreciates in value in the foreign exchange markets. What is the impact on U.S.Real GDP?
A) It rises because dollar depreciation shifts the U.S. AD curve rightward.
B) It falls because dollar depreciation shifts the U.S. SRAS curve leftward.
C) There is no effect on Real GDP since dollar depreciation does not affect either the U.S. AD or the U.S. SRAS curve.
D) It depends on whether the U.S. AD curve shifts rightward by more or less than the U.S. SRAS curve shifts leftward.
Correct Answer:
Verified
Q70: Which of the following is not an
Q72: With a decrease in the budget deficit,the
Q73: Which of the following is not an
Q75: A simultaneous rightward shift in SRAS and
Q77: A simultaneous leftward shift in SRAS and
Q78: Dollar appreciation raises United States Real GDP
Q83: Suppose Japanese real interest rates fall.Typically,we should
Q84: A decrease in U.S.real interest rates causes
Q87: An increase in U.S.real interest rates causes
Q95: If U.S.real interest rates fall,international repercussions put
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents