00:01
The depreciation of the us dollar having a positive effect on aggregate demand is a true statement.
00:05
And that's because if we look at aggregate demand, we have our net exports piece.
00:10
Net exports, of course, being exports minus imports.
00:14
And if the us dollar depreciates, what this means is that us goods are relatively less expensive than foreign goods.
00:21
So initially we had whatever net exports there was.
00:24
But relative to what it was prior to the us dollar depreciated, what we're looking at now is that exports will, increase because like i said it is relatively cheaper to purchase u .s.
00:35
Goods and it is foreign goods.
00:36
So not only are those who are domestic to the united states going to be purchasing domestically, but foreign people will be purchasing the u .s...