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( Ch . 4 ) Aggregate Effects on Exchange Rates. Assume that United States residents invest heavily in the Australian government and stocks. In addition,
Ch Aggregate Effects on Exchange Rates. Assume that United States residents invest
heavily in the Australian government and stocks. In addition, Australian residents invest
heavily in the United States.
Because your firm imports goods from Australia, you are assigned to forecast the value of AUD
the Australian dollar against the USD ie you forecast AUDUSD Explain how.each of
the following conditions will affect the value of the AUD, holding other things equal. Then,
aggregate all of these impacts to develop an overall forecast of the AUD's movement against
the USD. Please plot a figure to explain each condition, except for question f No figures, no
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