If the national incomes of foreign countries fall at the same time the dollar appreciates, then in the United States the aggregate demand curve shifts to the left.
Added by Beth J.
Step 1
- Dollar appreciates. - This means the value of the dollar increases. - Foreign countries will have to pay a higher price for U.S. goods. - People in the U.S. will have to pay a higher price as well. ** Show more…
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