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Group the Following According to Whether They May Affect the Demand

Question 63

Short Answer

Group the following according to whether they may affect the demand, supply or both the demand and supply of $A in the foreign exchange market?
a.a fall in the incomes of Australians
b.a fall in the inflation rate in Australia relative to the rates in other countries with which Australia trades
c.a fall in interest rates in Australia
d.an increase in the income of citizens of the United Kingdom

Correct Answer:

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a.supply increases
b.both dema...

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