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3 The Australian government has run a budget deficit in recent years. At the same time, the value of the Australian dollar has risen significantly

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3 The Australian government has run a budget deficit in recent years. At the same time, the value of the Australian dollar has risen significantly from its low of US$049 per A$1 in September 2001. a Are these two things related? If so, how? b The Australian government budget returned to decit due to the stimulus package. And yet, the Aussie dollar reached parity with the US dollar. How would you explain these two facts? A r! 1 A

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