Multiple Choice
Assume that the exchange rate between the dollar and the yen is ¥60 = $1. Suppose the exchange rate changes to ¥100 = $1. Because of the change:
A) Australian exports should increase and Australian imports should increase.
B) Australian exports should decrease and Australian imports should increase.
C) Australian exports should increase and Australian imports should decrease.
D) Australian exports should decrease and Australian imports should decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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