The exchange rate last month was $1= 1 Swiss francs. This month it is $1 = 1.15 Swiss francs. We can say that the value of the dollar
A. decreased, causing net exports to decrease and aggregate demand to fall.
B. increased, causing net exports to decrease and aggregate demand to rise.
C. increased, causing net exports to decrease and aggregate demand to fall.
D. deccreased, causing net exports to increase and aggregate demand to rise.
Answer: C
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The production possibilities frontier model assumes which of the following?
A) Production of any level of the two products that the economy produces is currently possible. B) Labor, capital, land, and natural resources are unlimited in quantity. C) The economy produces only two products. D) The level of technology is variable.
In the long run, all inputs are variable
a. True b. False
Which of the following does not result in a change in the demand for Mexican pesos?
a. changes in the supply curve of pesos on the foreign exchange market b. changes in U.S. income c. changes in U.S. tariff policy d. appreciation of the dollar e. devaluation of the peso
If net investment in 2017 is $225 billion and gross investment in 2017 is $350 billion, depreciation in 2017 is
A. $125 billion. B. $175 billion. C. $225 billion. D. $575 billion.