The Effect of an Increase in the Exchange Rate for Australian

question 32

Multiple Choice

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

• A) Offshore debt would become more expensive.
• B) The cost of importing goods from overseas would increase.
• C) People buying goods overseas with Australian dollars would find the goods relatively cheaper than before.
• D) The cost of Australian exports for overseas buyers would decrease.
• E) All of the given answers.

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Definitions:

False Consensus Effect

The cognitive bias where a person overestimates the extent to which their beliefs, values, or behaviors are normal and shared by others.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others and to understand that others have beliefs and perspectives different from one's own.

Fundamental Attribution Error

The inclination to place excessive focus on personal characteristics while undervaluing the impact of environmental conditions in interpreting the actions of others.

Individualism

A cultural orientation that values the independence, autonomy, and self-interest of individuals over groups or collectives.