If income in Australia falls while income in the UK rises,it is likely that:
A) Australia will increase its demand for UK imports, causing our exchange rate to depreciate.
B) the UK will increase its demand for Australian imports, causing the Australian dollar to depreciate.
C) the supply of Australian dollars will rise, causing our exchange rate to depreciate.
D) the demand for Australian dollars will rise, causing the Australian dollar to appreciate.
E) the demand for UK pounds will rise, causing the Australian dollar to appreciate.
Correct Answer:
Verified
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