If speculators lost confidence in foreign economies and so wanted to buy more U.S.bonds
A)the dollar would appreciate which would cause aggregate demand to shift right.
B)the dollar would appreciate which would cause aggregate demand to shift left.
C)the dollar would depreciate which would cause aggregate demand to shift right.
D)the dollar would depreciate which would cause aggregate demand to shift left.

Question

Quizplus · Accepted Answer

If speculators buy more U.S. bonds, demand for the dollar increases, causing it to appreciate. A stronger dollar makes U.S. exports more expensive and imports cheaper, reducing net exports and shifting aggregate demand to the left.

If Speculators Lost Confidence in Foreign Economies and So Wanted