The Effect of a Fall in the Exchange Rate for Australian

question 10

Multiple Choice

The effect of a fall in the exchange rate for Australian dollars relative to other major world currencies would include:

• A) People buying goods overseas with Australian dollars would find the goods relatively cheaper than before.
• B) The cost of importing goods from overseas would increase.
• C) The cost of offshore debt would increase.
• D) The cost of importing goods from overseas would increase and the cost of offshore debt would increase.

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