If the dollar increases in value relative to foreign

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a) Suppose that government spending is raised at the same time the money supply is lowered. What will happen to the (Keynesian) Aggregate Demand curve?

b) If the dollar increases in value relative to foreign currencies so that foreign goods become cheaper in the U.S., what will happen to the position of the short-run aggregate supply curve? The (Keynesian) aggregate demand curve?

Reference no: EM13484161

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