The Effect of an Increase in the Exchange Rate for Australian

question 32

Multiple Choice

The effect of an increase in the exchange rate for Australian dollars relative to other major world currencies would include:

• A) Offshore debt would become more expensive.
• B) The cost of importing goods from overseas would increase.
• C) People buying goods overseas with Australian dollars would find the goods relatively cheaper than before.
• D) The cost of Australian exports for overseas buyers would decrease.
• E) All of the given answers.

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Definitions:

Tensor Fasciae Latae

A muscle of the thigh that helps to stabilize and move the hip and knee, and is involved in the abduction and internal rotation of the hip.

Tibialis Posterior

A deep muscle of the lower leg that supports the arch of the foot and aids in plantar flexion and inversion of the foot.

Adductor Magnus

A large muscle in the thigh that helps in the movement of drawing the legs together (adduction).

Vastus Lateralis

A muscle in the thigh that is part of the quadriceps group, involved in extending the knee and stabilizing the leg.