Likely to affect the value of the dollar

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Reference no: EM131166303

1. How would each of the following be likely to affect the value of the dollar, all else being equal? Explain.

a. Australian shares are perceived as having become much riskier financial investments.

b. European computer firms switch from Australian-produced software to software produced in India, Israel and other nations.

c. As East Asian economies recover, international financial investors become aware of many new, high-return investment opportunities in the region.

d. The Australian government imposes a large tariff on imported automobiles.

e. The Reserve bank reports that it is less concerned about inflation and more concerned about an impending recession in Australia.

f. Australian consumers increase their spending on imported goods.

Reference no: EM131166303

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