Suppose There Is a Real Appreciation in Favour of Australia

Multiple Choice

Suppose there is a real appreciation in favour of Australia. Which of the following must have occurred?

A) Foreign currency has become more expensive in Australian dollars.
B) The foreign price level has increased relative to the Australian price level.
C) Foreign goods have become more expensive to Australians.
D) Foreign goods have become less expensive to Australians.
E) Foreign currency has become less expensive in Australian dollars.