Question

As a result of a decrease in the value of the dollar in relation to other currencies, U.S. imports decrease and exports increase. Consequently, there is a(n): increase in aggregate demand. increase in short-run aggregate supply. decrease in the quantity of aggregate output supplied in the short run. decrease in the quantity of aggregate output demanded.

Answer 1

The answer is A. increase in aggregate demand

Step-by-step explanation:

Decrease in imports and decrease in exports infer net exports are positive, meaning the country is exporting more than it is importing. As a result, demand for goods and services is higher and aggregate demand rises. Aggregate demand rises because more foreign consumers have access to this goods or services in addition to the local demand.