If the dollar rises in value compared to other currencies, what will happen in the United States?
A)An increase in aggregate demand
B)An increase in aggregate supply
C)A decrease in aggregate supply
D)An increase in the U.S.price level

Question

Quizplus · Accepted Answer

When the dollar rises in value compared to other currencies, it makes imports cheaper for Americans, which can lead to an increase in aggregate supply as businesses have access to cheaper inputs and goods from abroad.

If the Dollar Rises in Value Compared to Other Currencies