A)Explain whether each of the following changes would tend to appreciate or to depreciate the Australian dollar, using supply and demand curves for the foreign exchange market to illustrate your answers:

higher interest rates in Japan

a tight Australian monetary policy

an expansionary Australian fiscal policy

B)Consider three ways of helping poor people to buy food, clothing and shelter. The first way is to pass laws setting price ceilings to keep these basic goods affordable. The second is to have the government distribute coupons that give poor people a discount when they buy these necessities. The third is for the government to distribute income to poor people. Which program is more likely to have an efficient outcome? Describe why the other programs are not likely to be efficient.