Which factor will cause the aggregate demand curve to shift to the left?
A) a rise in consumer confidence
B) a fall in excess capacity of businesses
C) an increase in foreign income
D) an appreciation of the dollar

Question

Quizplus · Accepted Answer

An appreciation of the dollar makes U.S. goods more expensive for foreign buyers, reducing exports, and increasing imports which will lead to a decrease in aggregate demand.

Which Factor Will Cause the Aggregate Demand Curve to Shift