If Australians Develop an Increased Preference for Foreign Goods, How

question 50

Multiple Choice

If Australians develop an increased preference for foreign goods, how will the exchange rate for the dollar respond in the long run, ceteris paribus?

• A)Exchange rates will rise.
• B)Exchange rates will fall.
• C)Exchange rates will be unaffected by changes in the preference for imported goods by Australians, both in the short run and in the long run.
• D)The exchange rate will be affected in the short run, but not in the long run.

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Definitions:

Management Function

Essential activities including planning, organizing, leading, and controlling that are performed to achieve business objectives.

Planning

The process of making plans for something, often involving setting goals and determining the steps needed to achieve those goals.

Establish Objectives

The process of defining specific, measurable, achievable, relevant, and time-bound goals that an organization or individual aims to achieve.

Internal User

Individuals within an organization, such as management and employees, who use financial information for decision-making purposes.