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PLEASE ANSWER ALL THE LETTERS. THANK K YOU Question 3 Consider a foreign exchange AUD market. Discuss the likely impact of the following events with

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PLEASE ANSWER ALL THE LETTERS. THANK K YOU

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Question 3 Consider a foreign exchange AUD market. Discuss the likely impact of the following events with proper diagram(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%. [10+10 = 20 marks]

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