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 could decrease Australia’s competitiveness?
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a decrease in Australia’s inflation rate
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a fall in interest rates in Australia
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an appreciation of the Australian dollar
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a decrease in average weekly earnings in Australia
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Explanation:
Detailed explanation-1: -Answer and Explanation: The correct answer is A. An increased domestic rate of interest increases the prices of products within its economy, making the importation of products cheaper. Therefore, increased importation is also experienced in a country when its currency value appreciates.
Detailed explanation-2: -Interest rate differentials. Commodity prices. Purchasing power parity. Government credit ratings. Sentiment and speculation. 20-May-2019
There is 1 question to complete.