If the interest rate in Australia falls,overseas investors:
A) increase their demand for Australian dollars and the Australian exchange rate falls.
B) increase their demand for Australian dollars and the Australian exchange rate increases.
C) decrease their demand for Australian dollars and the Australian exchange rate rises.
D) decrease their demand for Australian dollars and the Australian exchange rate falls.
Correct Answer:
Verified
Q46: A depreciating nominal foreign exchange rate may
Q47: All else being constant,a currency should _
Q48: A central bank may seek to influence
Q49: All else being constant,a currency should _
Q50: When a government prohibits exports or imports
Q52: When a central bank takes action to
Q53: If foreign interest rates increase relative to
Q54: If currency traders are anticipating a currency's
Q55: A tax levied on imports into a
Q56: In international trade flows,an embargo is:
A) a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents