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10 June, 12:48

The dollar has appreciated it gets the current seas of many of the US is top trading partners. what outcome could just fall in foreign price levels have an aggregate demand?

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  1. 10 June, 12:53
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    Outcome in Foreign price levels:

    When the dollar appreciates its value the relative price of goods and services for the domestic products gains a higher value. This change in the relative price will cause the US products value to decrease its exports and to increase its imports.

    The increase or the decrease in the goods value will cause the shift in the AD curve. When a currency appreciates the demand for the currency goes higher and if the currency value depreciates it loses its value against the country from which it is being traded.
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