If NZD appreciate, how will NZ import change?radio_button_uncheckedImport increase, Import Payments increaseradio_button_uncheckedImport decrease, Import Payments decreaseradio_button_uncheckedImport increase, Import Payments decreaseradio_button_uncheckedImport decrease, Import Payments increaseSUBMIT
Question
If NZD appreciate, how will NZ import change?radio_button_uncheckedImport increase, Import Payments increaseradio_button_uncheckedImport decrease, Import Payments decreaseradio_button_uncheckedImport increase, Import Payments decreaseradio_button_uncheckedImport decrease, Import Payments increaseSUBMIT
Solution
If the New Zealand Dollar (NZD) appreciates, it means that it has increased in value relative to other currencies. This makes foreign goods cheaper for New Zealanders to buy, so imports would likely increase.
However, because the NZD is now worth more, the total amount spent on these increased imports (import payments) may not necessarily increase. In fact, it could decrease if the increase in the value of the NZD is greater than the increase in the quantity of imports.
So, the correct answer would be: "Import increase, Import Payments decrease".
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