The exchange rate last year was $1 = 1.1 euros. This year it is $1 = 0.95 euros. We can say that the value of the dollar
A. increased; causing net exports to decrease and aggregate demand to rise.
B. increased; causing net exports to decrease and aggregate demand to fall.
C. decreased, causing net exports to increase and aggregate demand to rise.
D. decreased, causing net exports to decrease and aggregate demand to fall.
Answer: C
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