The demand curve for Australian dollars slopes downward because as the Australian dollar ________ Australian goods become ________ expensive to foreign residents, so they purchase fewer Australian goods, and the quantity of Australian dollars demanded decreases.
A)depreciates; more
B)appreciates; less
C)appreciates; more
D)depreciates; less

Question

Quizplus · Accepted Answer

When the Australian dollar appreciates, it becomes more expensive for foreign residents to purchase Australian goods, leading to a decrease in the quantity of Australian dollars demanded.

The Demand Curve for Australian Dollars Slopes Downward Because as the Australian