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:

Primary Current

The current flowing through the primary winding of a transformer or another electrical device intended for initial energy transformation.

Secondary

The coil in a transformer that receives energy from the primary coil through electromagnetic induction, thereby transferring energy from the primary to the load.

Laminated Construction

A manufacturing technique used in electrical machines and transformers to minimize eddy current losses by stacking thin sheets of metal together.

Thin Sheets

Flat, slender pieces of material of small thickness compared to its other dimensions.