Question
Please refer to the question below. The current Australian foreign exchange at equilibrium is 0.7 US dollar ($US) per Australian dollar. What will happen to
Please refer to the question below.
The current Australian foreign exchange at equilibrium is 0.7 US dollar ($US) per Australian dollar. What will happen to the Australian foreign exchange in the two following different scenarios?
a.1. Less and less Americans travel to Australia. Please elaborate your answer using the concepts of the demand curve for Australian dollars and the supply of Australian dollars.
a.2. Due to the Covid-19 pandemic, the US productivity growth is lower thanAustralia's productivity growth. Please elaborate your answer using the concepts of the demand curve for Australian dollars and the supply of Australian dollars.
Please provide a graph if possible.
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