Related to Solved Problem #1] A reporter for the Wall Street Jo mal wrote, A str

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Related to Solved Problem #1] A reporter for the Wall Street Jo mal wrote, A strong dollar and weak growth overseas porter d downward pressure on U S exports Source: Jon Hilsenrath, "Rising Dollar and Falling Oil Could Be Recipe For a U.S. Asset Boom," Wall Street Joumal, December 11, 2014. A "strong dollar means that the O A. U.S dollar exchanges for fewer units of foreign currencies O B. U.S money supply is increasing O C. U.S economy is strong O D. U.S dollar exchanges for more units of foreign currencies "Weak growth overseas" means that O A. foreign investment is growing more slowly than U.S. investment B. the foreign money supply is gong more slowly than the US, money supply ° C. foreign economies are growing more slowly than the U S economy O D. foreign inflation is growing more slowly than U.S. inflation. The combination of a strong U.S dollar and weak growth overseas might result in lower US exports because O A. U.S. exports become less expensive for foreign buyers while income, and purchasing power, in other countries is rising only slowly B. U S exports become more expensive for foreign buyers while incdae and urchasing power in other countries is nsing only slowly O C. US. exports become more expensive for foreign buyers while income, and purchasing power, in other countries is falling D. u s exports become less expensive fr fregn buyers while income, and purchasing power n other countnes is talng The result of a strong dollar will be o A. an upward movement along the U S aggregate demand curve because the price level wil rise as fewer exports are sold O B. a nghtward shit of the us aggregate demand curve because it reduces exports, a spending component of aggregate demand O C. a downward movement along the U.S aggregate demand curve because the price level wll fall as fewer exports are sold O D. a leeward stuft of the U S aggregate demand curve because it reduces exports, a sperdeng component of aggregate demand Click to select your answer

Explanation / Answer

Ans)

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A. US dollar exchanges for fewer units of foreign currencies.
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C. foreign economies are growing more slowly than the US economy.
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B. US exports become more expensive for foreign buyers while income and purchasing power in other countries is rising only slowly.
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D. a leftward shift of the US aggregate demand curve because it reduces exports,a spending component of aggregate demand

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