It May Be Argued That a Factor That Can Affect

question 34

Multiple Choice

It may be argued that a factor that can affect the equilibrium exchange rate is changes in relative income growth between countries.If the growth in Australian national income rises substantially,while that in the USA remains stagnant,which of the following impacts would you expect to occur?

• A) A new equilibrium exchange rate may see the AUD depreciate.
• B) The relative strength of import growth and foreign investment inflows will impact upon the equilibrium exchange rate.
• C) A new equilibrium exchange rate may see the AUD appreciate.
• D) All of the given answers are correct.

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Definitions:

Lottery Numbers

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Fixed-Ratio Schedule

A reinforcement schedule in behavior analysis where a response is reinforced only after a specified number of responses have been made.

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In psychology, the gradual weakening of a conditioned response when the reinforcement is withheld.

Instrumental Response

Behavior that is performed because it is instrumental in producing a desired outcome or avoiding an undesired one.