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Question 3 (this question has one part) In 2023, (i) the interest rate in Australia rose from 3.35% to 4.35%, and in New Zealand, it

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Question 3 (this question has one part) In 2023, (i) the interest rate in Australia rose from 3.35% to 4.35%, and in New Zealand, it increased from 4.47% to 5.55%, and (ii) their respective GDP growth rate was 2% and 1.3%. While taking other factors as given, please use foreign exchange market and static aggregate demandaggregate supply diagrams to illustrate and explain the joint effect of (i) and (ii) on the exchange rate, $AU/SNZ, and New Zealand's real GDP. [10 marks]

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