SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following combination of factors provides the best explanation for an increase in the volume of Australian imports?
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a depreciation of the Australian dollar and a high rate of economic growth in China
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a depreciation of the Australian dollar and a low rate of domestic economic growth
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an appreciation of the Australian dollar and a high rate of domestic economic growth
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an appreciation of the Australian dollar and a high rate of inflation in China
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Explanation:
Detailed explanation-1: -Australia has strong competitive advantages in its skills, research base, political and legal institutions and high standards of living. Since 1992, the growth of the Australian economy has continued to outpace every other major developed economy.
Detailed explanation-2: -If the exchange rate between the Australian dollar and the US dollar is 0.75 then one Australian dollar can be converted into US75c. An increase in the value of the Australian dollar is called an appreciation.
There is 1 question to complete.