Article 4 - Why the RBA is loath to lift rates - Karen Maley. Date: 6 May 2017.

http://bit.ly/2sdj94S

4.7.At present, China is experiencing falling GDP and rising debt levels. How would you expect the Australian dollar to be affected?A.It would depreciateB.It would appreciateC.It would be unaffected

4.8.According to the article by Karen Maley, a high Australian dollar would "act as a drag on sectors such as tourism and education which have benefited from the currency's decline since 2013." This would suggest:A.The budget deficit increases or the budget surplus decreasesB.The budget deficit decreases or the budget surplus increasesC.The trade deficit increases or the trade surplus decreasesD.The trade deficit decreases or the trade surplus increases