Back
Back
Back
Back
Back
Back
Back

Welcome to Live Chat

Welcome to LiveWebTutors Services, World's leading Academic solutions provider with Millions of Happy Students.

Call Back
logo

24x7 Support Available

To Get the Best Price Chat With Our Experts

chat now

In A Hurry? Get A Callback

logo

shopping cart 0

Subject Solutions Code Description Price Delete

Amount Payable : $0

continue shopping proceed to checkout

World's Leading Assignment Library

If investors expect an increase in the interest rate paid on US deposits, how the Australian exchange rate will change?

Question Preview:

Macroeconomics of open economics Questions: 1. If investors expect an increase in the interest rate paid on US deposits, how the Australian exchange rate will change? Explain. (6 marks) 2. If there is a permanent exogenous decrease in the US money supply, please discuss its short run and long run effects on the US and Australian money markets, and the exchange rate, US$/AU$. (8 marks) 3. On 22nd of March 2018, US Federal Reserve raised interest rate by 0.25%. Correspondingly, however, Australian dollar (AU$) appreciated relative to the US dollar. Please search relevant info...

View Complete Question >>

Question Preview:

Macroeconomics of open economics Questions: 1. If investors expect an increase in the interest rate paid on US deposits, how the Australian exchange rate will change? Explain. (6 marks) 2. If there is a permanent exogenous decrease in the US money supply, please discuss its short run and long run effects on the US and Australian money markets, and the exchange rate, US$/AU$. (8 marks) 3. On 22nd of March 2018, US Federal Reserve raised interest rate by 0.25%. Correspondingly, however, Australian dollar (AU$) appreciated relative to the US dollar. Please search relevant information and use what you have learnt from this unit to explain this AU$ appreciation. (6 marks)

View Less >>

Solution Preview

In the short run, the prices and output are constant in the home as well as the foreign country in the short run. The decrease in money supply leads to increase the interest rate in the economy. Now increase in the interest rate tend to discourage the investment spending in the home country. The investments in foreign currency will increase, and due to this, the demand for foreign currency will increase. The home currency will appreciate compared to other currencies. The exchange rate (US$/AU$) will increase.

question Get solution

$5

Orginal Price : $6.50

Pay Now

Upload Assignments

250 words

side

Get Your Assignment

Don’t delay more, place your order now. Quick assignment help will be offered to you.

Order Now

CUSTOMER REVIEWS

Excellent

logo

Based on 702 reviews See all reviews here

One of the Best Service

I trust LiveWebTutors for my assignments because of their ability to deliver the perfect assignments time and again. Only a few of my assignments required minor revisions. The rest assured it is the best assignment writing service in the market.

Elizabeth
Sydney

Great Service and on time

I felt so exhausted and burdened with the large number of assignments I had to write and desperately needed someone to help me with all the writing and there was LiveWebTutors company on the internet. They finished my assignments before the due date and also offered me a first-timer discount.

Christina
Perth

One of the Best Assignment Provider

I ordered my Mathematics and Marketing assignments from them last month. I received the content on the set date. Most importantly, the assignments were well-written and plagiarism free. I scored a top grade for the assignment written by them. They are a reliable company.

Oli
Brisbane

Very Helpful Customer Service

I was quite unsure about getting my assignment written online but after coming across LiveWebTutors.com, all my worries have vanished. The quality of the assignments written by their writers is just invincible. Their customer support is very polite and helpful. You should try their service at least once

Kabir
Adelaide