If Australians Develop an Increased Preference for Foreign Goods, How

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.