Q. If the dollar depreciates, this likely will cause

  • (A) U.S. aggregate supply to rise in the short run and rise in the longrun.
  • (B) U.S. aggregate supply to rise in the short run but fall in the longrun.
  • (C) U.S. aggregate supply to fall in the short run and fall in the longrun.
  • (D) U.S. aggregate supply to fall in the short run but rise in the longrun
βœ… Correct Answer: (B) U.S. aggregate supply to rise in the short run but fall in the longrun.

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