If prices rise faster in the United States of America (USA) than in Australia,and USA goods become relatively more expensive,then
A) demand for the $US declines and the $US appreciates relative to the Australian dollar.
B) demand for the $US increases and the $US appreciates relative to the Australian dollar.
C) demand for the $US declines and the $US depreciates relative to the Australian dollar.
D) demand for the $US increases and the $US depreciates relative to the Australian dollar.
Correct Answer:
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