The U.S. exchange rate rises. As a result, there is a
A. movement along the U.S. aggregate demand curve but the curve does not shift.
B. rightward shift in the U.S. aggregate demand curve.
C. leftward shift in the U.S. aggregate demand curve.
D. rightward shift in the long-run U.S. aggregate supply curve.
Answer:C
The U.S. exchange rate rises. As a result, there is a
A. movement along the U.S. aggregate demand curve but the curve does not shift. B. rightward shift in the U.S. aggregate demand curve. C. leftward shift in the U.S. aggregate demand curve. D. rightward shift in the long-run U.S. aggregate supply curve.