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Suppose that a new trade agreement between Australia and New Zealand causes the exchange rate to change from NZD1.10/AUD to NZD1.20/AUD. Which currency has appreciated as a result of this trade agreement and by what percent?
NZD by 8.3%
NZD by 9.1%
Neither currency has appreciated
AUD by 8.3%
AUD by 9.1%
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