A depreciation of the U.S.dollar against foreign currencies tends to __________ U.S.net exports and shift the U.S.AD curve to the __________.
A) raise; right
B) raise; left
C) lower; right
D) lower; left

Question

Quizplus · Accepted Answer

A depreciation of the U.S. dollar makes U.S. goods cheaper for foreign buyers, increasing exports and decreasing imports, which raises net exports. This increase in net exports shifts the aggregate demand (AD) curve to the right.

A Depreciation of the U