When the Value of the Dollar Increases, the Net Effect

Multiple Choice

When the value of the dollar increases, the net effect on the economy

A) will be an increase in short-run aggregate supply and a decrease in aggregate demand.
B) will be decrease in short-run aggregate supply and an increase in aggregate demand.
C) will be an increase in both aggregate demand and aggregate supply.
D) will be a decrease in both aggregate demand and aggregate supply.