Multiple Choice
Consider a textbook situation in which Australia and the USA are experiencing similar inflation rates.If the rate of inflation were to increase significantly in Australia,relative to the USA,which of the following impacts would be expected to occur?
A) There would be an increased demand by Australians for US goods and services.
B) Overseas demand for AUD goods would switch to relatively cheaper US goods.
C) The price of goods and services exported to the USA would increase.
D) All of the given answers are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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