25b) Suppose Australia faces relatively higher inflation compared with the rest of the world.250) Suppose speculators believe that the value of the Australian Dollar will be higher in the future relative to other currencies. 25d) Suppose the rest of the world decrease their interest rates relative to Australia. Explain how each of the following events affect the (i) Demand for AUD (Australian Dollar) (1 mark), (ii) Supply of AUD (1 mark) and (iii) Exchange rate (value of AUD relative to other currency) (1 mark). (Hint: You must analyse from the perspective of Australia and Australian dollars relative to other currencies). 25a) Suppose that China experiences an economic expansion, which causes a rise in income in China relative to Australia