If the Inflation Rate Falls in Australia Relative to the Inflation

question 66

Multiple Choice

If the inflation rate falls in Australia relative to the inflation rate in the United Kingdom, this will cause:

• A) an increase in the demand for dollars and an increase in the supply of dollars
• B) an increase in the demand for dollars and a decrease in the supply of dollars
• C) a decrease in the demand for dollars and a decrease in the supply of dollars
• D) a decrease in the demand for dollars and an increase in the supply of dollars

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Definitions:

Rescission

The act of revoking, cancelling, or annulling a contract, returning all parties involved to their positions prior to the agreement, often due to misrepresentation, fraud, or mutual mistake.

Materiality

The significance of information or an event in influencing decisions or actions based on its potential impact.

Innocent Misrepresentation

A false statement made by one party to another without knowing it was false, which may lead to the rescission of a contract.

Material

Important. In securities law, a fact is material if a reasonable person would consider it important in his decision to purchase shares or to vote shares.