Value of Dollar

CFA Level I
#1

Aggregate demand will most likely INCREASE in response to a DECREASE in the value of the dollar. Can someone explain why please? THanks!

#2

AD = C + I + G + NX Dollar value goes down, AD rises due to more net exports.

#3

thanks

#4

Yeah our dollar/our goods now are a lot cheaper to foreign countries who in turn start to buy our cheaper goods and boost our aggregate demand.