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Dollar over that five-year period

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Australia's economy boomed from 2002 to the beginning of 2008, largely driven by strong Chinese demand for its commodity exports. According to the short-run model presented in KOM Chapter 15, would you expect the Australian dollar (A$) to have appreciated or depreciated vis-à-vis the U.S. dollar over that five-year period? Why? What actually happened?

Reference no: EM131249480

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