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Which of the Following Presents the Sequence of Events That

Question 118

Multiple Choice

Which of the following presents the sequence of events that would occur in determining the exchange rate for the Australian dollar, all things equal?  


A)  If the Australian dollar depreciates, the Australian trade deficit will decrease because Australian products become cheaper to foreigners. 
B)  If the Australian dollar depreciates, the Australian trade deficit will decrease because Australian products become more expensive to foreigners. 
C)  If the Australian dollar depreciates, the Australian trade deficit will increase because Australian products become more expensive to foreigners. 
D)  If the Australian dollar appreciates, the Australian trade deficit will decrease because Australian products become cheaper to foreigners.

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