Suppose There Is a Real Appreciation in Favour of Australia

question 67

Multiple Choice

Suppose there is a real appreciation in favour of Australia. Which of the following must have occurred?

• A) Foreign currency has become more expensive in Australian dollars.
• B) The foreign price level has increased relative to the Australian price level.
• C) Foreign goods have become more expensive to Australians.
• D) Foreign goods have become less expensive to Australians.
• E) Foreign currency has become less expensive in Australian dollars.

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Definitions:

Credit Card Companies

Financial institutions that issue credit cards and manage accounts, facilitating electronic payments and extending credit to consumers.

Minimum Payment

The smallest amount of money that one must pay on a debt for a particular period, often used in the context of credit card debts.

Financial Distress

A situation where an individual or company cannot meet or has difficulty paying off its financial obligations to creditors.

Anchored

A cognitive bias where an individual relies too heavily on an initial piece of information (the "anchor") when making subsequent judgments or decisions.