Suppose the U

Multiple Choice

Suppose the U.S. dollar gains strength against the euro (and against other major currencies) . This strengthening of the dollar will cause which of the following to occur?

A) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the right.
B) The aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the right.
C) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the left.
D) the aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the left.