Assuming the value of Kina appreciated from A$1=K1.30 to A$1=K1.20. The likely impact on PNG exports to Australia will

Question

Assuming the value of Kina appreciated from A$1=K1.30 to A$1=K1.20. The likely impact on PNG exports to Australia will
A. be expensive 
B. be cheap
C. remain unchanged 
D. increase 
Choose the correct answer.

GPT-4o mini · Answer

The correct answer is **A. be expensive**. When the value of Kina appreciates (meaning it takes fewer Kina to buy Australian dollars), it makes Papua New Guinea's exports more expensive for Australian buyers. This could lead to a decrease in demand for PNG exports in Australia, as they would cost more in Australian dollars.