Which of the following groups will be unhappy if the Australian dollar appreciates?[Fill in the blank]

Question

BlackTom AI · Accepted Answer

An appreciation of the Australian dollar makes Australian goods and services more expensive for foreign buyers and reduces the AUD value of foreign-currency receipts — so exporters are the losers.

1. Relevant knowledge points and concepts
- Currency appreciation: one unit of AUD buys more foreign currency; conversely, one unit of foreign currency buys fewer AUD.
- Exporters receive foreign currency for sales abroad; if the AUD strengthens, when they convert foreign receipts back to AUD they get fewer AUD per unit of foreign currency. Also, exports priced in foreign currency become relatively more expensive for foreign buyers, lowering demand.
- Importers and Australians spending abroad benefit because foreign goods and services cost fewer AUD.

2. Step-by-step reasoning
- Consider an Australian beef exporter who sells a consignment for US$1,000.
- If initially 1 USD = 1.43 AUD (i.e. 1 AUD = 0.70 USD), conversion yields: 1,000 USD × 1.43 AUD/USD = 1,430 AUD.
- If the AUD appreciates so 1 USD = 1.25 AUD (i.e. 1 AUD = 0.80 USD), conversion yields: 1,000 USD × 1.25 AUD/USD = 1,250 AUD.
- The exporter receives 180 AUD less for the same sale after appreciation — a direct loss in domestic currency revenue.

3. Intermediate calculation steps shown above:
- Initial: 1,000 × 1.43 = 1,430 AUD
- After appreciation: 1,000 × 1.25 = 1,250 AUD
- Change: 1,430 − 1,250 = 180 AUD loss

4. Why the correct answer is correct
- Exporters (Australian cattle growers selling beef overseas) either get fewer AUD when converting foreign sales or must raise export prices in foreign currency to maintain margins, which reduces competitiveness and sales. Both effects make them unhappy when the AUD appreciates.

5. Why other options are incorrect
- b. Companies buying inputs overseas benefit because imported inputs become cheaper in AUD.
- c. Australian students studying abroad benefit because tuition and living costs paid in foreign currency take fewer AUD.
- d. An Australian firm buying a plant overseas benefits because the purchase costs fewer AUD after appreciation.

6. Conclusion
- Therefore, the group that will be unhappy is a. Australian cattle growers who export their beef overseas, which matches the provided answer.

Which of the following groups will be unhappy if the Australian dollar appreciates?[Fill in the blank]单项选择题

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