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sidebar interaction. Press tab to begin.If NZD appreciate, how will NZ export change?radio_button_uncheckedExport increase, Export Receiptes increaseradio_button_uncheckedExport decrease, Export Receipts decreaseradio_button_uncheckedExport increase, Export Receipts decreaseradio_button_uncheckedExport decrease, Export Receiptes increaseSUBMIT

Question

sidebar interaction. Press tab to begin.If NZD appreciate, how will NZ export change?radio_button_uncheckedExport increase, Export Receiptes increaseradio_button_uncheckedExport decrease, Export Receipts decreaseradio_button_uncheckedExport increase, Export Receipts decreaseradio_button_uncheckedExport decrease, Export Receiptes increaseSUBMIT

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Solution

The appreciation of the New Zealand Dollar (NZD) means that it is becoming more valuable compared to other currencies. This has a direct impact on exports.

  1. When NZD appreciates, it means that it takes more of a foreign currency to buy NZD.
  2. This makes New Zealand's goods and services more expensive for foreign buyers.
  3. As a result, the demand for New Zealand's exports decreases because they are more expensive on the international market.
  4. Therefore, the volume of exports decreases.
  5. The export receipts (the amount of money received from exports) would also decrease because fewer goods and services are being sold overseas.

So, the correct answer is: Export decrease, Export Receipts decrease.

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‘Import’ is related ‘Export’ in the same way ‘Expenditure’ is related to:RevenueDeficitTaxExchange

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