Economics 9708 · AS & A Level · 6.4

6.4 — practice question

A newspaper headline said that the Australian car industry has been impacted by the strength of the Australian dollar. Which of the following would not be an effect of a strong and rising Australian dollar?

  • AReduced foreign demand for Australian cars caused increased unemployment.
  • BThe price of exports of Australian cars became more expensive.
  • CThe price of foreign competitive cars became less expensive.
  • DThe price of imports of car parts became more expensive.

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