Explain how a relative increase in australia

Reference no: EM133504387

Question 1: explain how a relative increase in australia intrest rate will impact australia exports and imports . discuss the effect it will have on Australias current account.

Question 2: show the impact that a relative increase in australian intrest rates will have on the exchange rate of chinese yuan for dollars . explain what this will do to the level of goods imported from china to australia and discuss the effect it will have on australia current account .

Question 3: suppose that the world is currently experiencing a period of strong economic growth . both the european union and australia experience robust increases in income . illustrate how this will affect the exchange rate using a graph of demand and supply of dollars for euros . will the dollars appreciate against the euro ? explain why

Reference no: EM133504387

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