The exchange rate last year was $1 - 1.1 euros. This year it is $1= 1.2 euros, We can say that the value of the dollar fell; causing net exports to increase and aggregate demand to rise. increased; causing net exports to decrease and aggregate demand to rise. increased; causing net exports to decrease and aggregate demand to fall. fell; causing net exports to decrease and aggregate demand to fall.
The exchange rate last year was $1 - 1.1 euros. This year it is $1= 1.2 euros, We can say that the value of the dollar fell; causing net exports to increase and aggregate demand to rise. increased; causing net exports to decrease and aggregate demand to rise. increased; causing net exports to decrease and aggregate demand to fall. fell; causing net exports to decrease and aggregate demand to fall.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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