d. If the Australian dollar appreciates in value, what will happen to the price of exports (from the perspective of overseas buyers)? Similarly, if the Australian dollar appreciates, what impact will it have on the price of imports (from the perspective of Australian buyers)? (1 mark) e. Australia has had a floating exchange rate system since 1983. Under a floating exchange rate system, if the value of exports and the inflow of money from the country is greater than the value of imports and the outflow of money from overseas, what will happen to the exchange rate? Will it appreciate or depreciate? Explain your answer by using the relationship between demand and supply and the diagrams provided in part 6 below. (3 marks) Page 14 of 16