If the dollar appreciates in value relative to foreign currencies:

A. Aggregate demand decreases because C decreases
B. Aggregate demand increases because C increases
C. Aggregate demand decreases because net exports decrease
D. Aggregate demand increases because net exports increase


C. Aggregate demand decreases because net exports decrease

Economics

You might also like to view...

Professor's economics students are constructing models for how gasoline prices change. Maria's model has very realistic assumptions and is quite complex. Anna's model is less complicated and less realistic

Maria's model correctly predicts gas price increases 5% of the time. Anna's model predicts correctly 15% of the time. On the basis of usefulness or "goodness," Professor will give which student's model the higher grade and why? A) Maria's model gets the higher grade because it is more complex. B) Anna's model gets the higher grade because it is simpler. C) Maria's model gets the higher grade because it is more realistic. D) Anna's model gets the higher grade because it predicts accurately more often.

Economics

Which of the following is true of vertical integration?

a. It leads to the formation of larger firms from smaller ones. b. It occurs when a firm adds more layers of management. c. It occurs when firms try to buy up their competitors and corner the market. d. It has no effect on the internal organization of a firm; it only affects outside markets. e. It occurs when a firm buys another firm in a completely unrelated market.

Economics

Tax cuts associated with supply-side economics often lead to increased

A. federal budget surpluses. B. federal budget deficits. C. foreign trade surpluses. D. government spending.

Economics

Explain why a firm's long-run total cost is no greater than its short-run total cost. Under what circumstances will the two be equal?

What will be an ideal response?

Economics