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Determine the exchange rate of the australian dollar

Assignment Help Business Economics
Reference no: EM133065407

Write short notes on each of the following using diagrams where appropriate:

a. The Swan diagram

b. What policies can be used to attain both internal and external balance where the exchange rate cannot be devalued or revalued? Explain with examples.

c. What are the advantages and disadvantages respectively of using fixed and flexible exchange rates to correct balance of payments imbalances?

d. What are the key factors that determine the exchange rate of the Australian dollar both in the short run and the long run?

Reference no: EM133065407

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