Suppose the U.S. dollar weakens against the euro (and against other major currencies). This weakening of the dollar will cause which of the following…
Suppose the U.S. dollar weakens against the euro (and against other major currencies). This weakening of the dollar will cause which of the following to occur?
A) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the right.
B)The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the left.
C) The aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the left.
D)The aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the right.
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