The foreign purchases effect suggests that a decrease in the US price level relative to other countries will?

a. shift the aggregate demand curve left
b. shift the aggregate supply curve left
c. decrease US exports and increase US imports
d. increase US exports and decrease US imports

Answer:
D. The exchange rate effect suggests that as the price of the dollar depreciates relatively to other countries, then countries could buy more of our goods and we could afford less of other countries' goods
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