An increase in the value of the dollar in international exchange rate markets will cause the relative price of U.S. produced goods to foreigners to rise, the relative price of foreign produced goods to Americans to fall, causing U.S. exports to fall and U.S. imports to rise.
a. True
b. False
Indicate whether the statement is true or false
Question 2
In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:
a. inventory is depleted.
b. inventory is unchanged.
c. employment decreases.
d. employment increases.
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