How will the exchange rate (foreign currency per dollar)respond to an increase in the preference for imported goods by Australians in the long run,ceteris paribus?

Question

Quizplus · Accepted Answer

An increase in preference for imported goods will lead to an increase in demand for foreign currency to purchase those goods, which will cause the exchange rate to fall in the long run, ceteris paribus.

How Will the Exchange Rate (Foreign Currency Per Dollar)respond to an Increase