Correct/Complete Question:
The United States produces computers and sells them to Russia. At the same time, Russia produces cars and sells them to the United States. Suppose there is an appreciation in the dollar. This will cause:
Answer:
increase in imports into the United States and decrease in exports to Russia will occur, which will cause a decrease in aggregate demand and real GDP
Step-by-step explanation:
Aggregate demand is the total demand for a good or service in an economy at a given time. Real GDP on the other hand can be defined as an inflated value of goods and services in an economy at a certain period of time. An inflation of the dollar will increase imports into the united states as it would decrease the exports to Russia. This because the appreciation of the dollar will affect the prices of both computers and cars. And as such will