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Consider a foreign exchange AUD market. Discuss the likely impact of the following events with properdiagram(s): a) A rise in Petrol price leads to inflation

Consider a foreign exchange AUD market. Discuss the likely impact of the following events with properdiagram(s):

a) A rise in Petrol price leads to inflation in Australia.

b) Reserve Bank of Australia (RBA) increases the interest rate by 0.25%.

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