Group the Following According to Whether They May Affect the Demand

question 27

Short Answer

Group the following according to whether they may affect the demand, supply or both the demand and supply of $A in the foreign exchange market?
a.a fall in the incomes of Australians
b.a fall in the inflation rate in Australia relative to the rates in other countries with which Australia trades
c.a fall in interest rates in Australia
d.an increase in the income of citizens of the United Kingdom

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Definitions:

Standard Activity

A benchmark level of activity or performance against which actual outcomes can be measured.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to products or job orders, calculated before the period begins based on expected costs and activity levels.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected for the work performed, multiplied by the standard hourly labor rate, indicating efficiency in labor use.

Insufficient Demand

A situation where the quantity of a product or service sought by buyers is less than the quantity supplied.