If the Rate of Growth of Australian National Income Increases

question 57

Multiple Choice

If the rate of growth of Australian national income increases while the rate of growth of national income in most other countries remains constant,we would expect:

• A) prices for foreign goods in Australia to fall.
• B) the Australian dollar to appreciate.
• C) the Australian dollar to depreciate.
• D) prices for Australian goods in Australia to rise.

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Definitions:

Long-term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable or long-term loans.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Current Liabilities

Financial obligations a company is required to pay within one year, such as accounts payable and short-term loans.

Accounts Payable

Liabilities owed by a business to its suppliers or vendors for goods and services purchased on credit.