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Aggregate Demand &Currency Exchange

Aggregate Demand &Currency Exchange. By Student Name. Exchange rate rises. Decrease in AD. DECREASES IN AD THE EXCHANGE RATE RISES. AD 2. AD 1. P. AS. The foreign exchange rate is the amount of a foreign currency that you can buy with a U.S dollar. b. Eq. P 1. Price Level.

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Aggregate Demand &Currency Exchange

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  1. Aggregate Demand &Currency Exchange By Student Name

  2. Exchange rate rises

  3. Decrease in AD DECREASES IN AD THE EXCHANGE RATE RISES AD2 AD1 P AS • The foreign exchange rate is the amount of a foreign currency that you can buy with a U.S dollar. b Eq P1 Price Level • Other things remaining the same, a rise in the foreign exchange rate decreases aggregate demand and will shift AD curve to the left from AD1 to AD2 c Q1 Qf Q Real GDP

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