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How lower relative australian national income would impact

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Problem 1: The US and Australia operate floating exchange regimes, and they trade with each other. The COVID-19 pandemic has caused Australia's national income to become even further below US national income. Discuss how lower relative Australian national income would impact the Australian dollar (AUD), ceteris paribus. Your answer must include the role of the actions of Australian and US residents, respectively.

Reference no: EM133007290

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