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If a Country's Currency Depreciates in the Foreign Exchange Markets

Question 8

Multiple Choice

If a country's currency depreciates in the foreign exchange markets, the result will be a shift of the aggregate demand curve __________; in addition, if intermediate goods are an important component of the country's imports, the short-run aggregate supply curve __________.


A) to the left; also will shift to the left
B) to the left; will shift to the right
C) to the right; will shift to the left
D) to the right; also will shift to the right

Correct Answer:

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