If interest rates rise in the United States: the aggregate demand curve will shift to the left because the U.S. dollar will appreciate. the aggregate demand curve will shift to the right because the U.S. dollar will depreciate. imports will fall. exports will rise.
Added by Linda V.
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S. dollar-denominated assets. This increased demand for the U.S. dollar leads to its appreciation. Show more…
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If speculators bid up the value of the U.S. dollar in the market for foreign exchange, then Answer U.S. goods become more expensive relative to foreign goods so aggregate demand shifts right. U.S. goods become less expensive relative to foreign goods so aggregate demand shifts right. U.S. goods become more expensive relative to foreign goods so aggregate demand shifts left. U.S. goods become less expensive relative to foreign goods so aggregate demand shifts left.
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