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AE Model: Components
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AE Model: Components
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15. Deriving the Aggregate Expenditures Model / AE Model: Components / Problem 5
Problem 5
If the US dollar strengthens against other currencies, what is the likely effect on US net exports?
A
Net exports will remain unchanged.
B
Net exports are likely to increase.
C
Net exports will fluctuate unpredictably.
D
Net exports are likely to decrease.
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