Other things being equal, a depreciation of the dollar
A. decreases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources.
B. decreases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources.
C. increases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources.
D. increases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources.
Answer: C
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