Suppose that the value of the US dollar($) yesterday was$1 = 4 yen. Today the exchange rate changed such that$1 = 1 yen.

Given that the US dollar hasdepreciated, the aggregate demand in the United States should

A.

not be affected.

B.

shift to the right.

C.

shift to the left.

Given that the US dollar has depreciated theshort-run aggregate supply in the United States should

A.

shift to the right.

B.

not be affected.

C.

shift to the left.