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wing snuatuous, expram what wr nappen t rate and provide reasons why: (a) In the US, there is a 6% increase in the money
wing snuatuous, expram what wr nappen t rate and provide reasons why: (a) In the US, there is a 6% increase in the money supply through the Federal Reserve buying bonds. (b) The Australian Treasury increased the Government bond rate from 0.5% to 2% due to increased activity in the Australian economy (c) In Australia, the level of GDP increased by 3% through increased productivity (d) In Australia, the current nominal interest rate is 3%, and the inflation rate is 1.1%. In the US, the nominal interest rate is 2.5%, and inflation is 0.3%. What will happen in the two countries? (e) The Australian Government introduced a stimulus package of $60 million into the Australian economy. What are the likely implications for the Australian economy and exchange rates?
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