Assume There Is an Increased Demand in the United States

question 198

Multiple Choice

Assume there is an increased demand in the United States for Australian wines. If all other factors are held constant, this will result in

• A) an increase in the U.S. dollar exchange rate for Australian dollars.
• B) an appreciation of the U.S. dollar.
• C) a movement along the demand curve for Australian wine.
• D) a decrease in the par value of the Australian dollar.

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