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The following Table is collected from the Budget October 2022-23 published on the budget.gov.au website. The estimate in 2024-25 results in the highest deficit of
The following Table is collected from the Budget October 2022-23 published on the budget.gov.au website. The estimate in 2024-25 results in the highest deficit of budget among the four years' estimates. Suppose that the budget deficits in Australia lead to an increase in Australian interest rates. I. What effect will the increase in interest rates have on the value of the dollar relative to the $US? II. What will happen to net exports and aggregate demand as a result? Explain your
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