If U.S. speculators gained greater confidence in foreign economies so that they wanted to move more of their wealth into foreign countries, the dollar would
A)appreciate which would cause aggregate demand to shift right.
B)appreciate which would cause aggregate demand to shift left.
C)depreciate which would cause aggregate demand to shift right.
D)depreciate which would cause aggregate demand to shift left.

Question

Quizplus · Accepted Answer

If U.S. speculators move wealth abroad, demand for foreign currency increases, causing the dollar to depreciate. A weaker dollar makes U.S. exports cheaper, boosting aggregate demand.

If US Speculators Gained Greater Confidence in Foreign Economies So That