Multiple Choice
If the dollar appreciates against the yen, ceteris paribus, this will cause:
A) net exports to decline, the rate of increase in aggregate demand to fall, and real GDP to increase at a lower rate.
B) net exports to decline, the rate of increase in aggregate demand to rise, and real GDP to increase at a higher rate.
C) net exports to increase, the rate of increase in aggregate demand to rise, and real GDP to increase at a higher rate.
D) net exports to increase, the rate of increase in aggregate demand to fall, and real GDP to increase at a lower rate.
Correct Answer:

Verified
Correct Answer:
Verified
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