2. Equilibrium rate of exchange

Suppose that, initially, the foreign exchange market between the United States and Australia is in equilibrium. Suppose that Australian consumers want to decrease their investment in U.S. firms. Illustrate how this change affects the market for Australian dollars by shifting one or both of the curves on the Following graph. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. \fThis change in the market for Australian dollars causes the U.S. dollar to against the Australian dollar. Which of the following is a disadvantage of this change in the supply of foreign currency for the United States? O American consumers face lower prices on Australian goods. O American consumers face higher prices on Australian goods. O U.S. exporting firms find it more difficult to compete in the Australian market. O U.S. exporting firms find it easier to sell goods in Australian markets