As the Exchange Rate Declines

question 55

Multiple Choice

As the exchange rate declines:

• A) the aggregate level of imports into the economy tends to fall.
• B) the volume of FX trading tends to fall.
• C) the need for RBA intervention tends to fall.
• D) the aggregate level of exports from the economy tends to fall.

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Definitions:

Depression

A common and serious medical illness that negatively affects how you feel, the way you think and how you act, offering feelings of sadness and/or a loss of interest in activities once enjoyed.

Ordinary Sadness

A normal emotional response to undesired circumstances or events, distinct from clinical depression, usually temporary and context-specific.

Specific Phobia

An intense, irrational fear of specific situations, objects, or activities, which can significantly interfere with daily functioning.

Unrealistic Fear

A fear that is disproportionate to the actual risk or threat present in a situation, often based on imagination or speculation rather than fact.