(Answered) Australias economy boomed from 2002 to the beginning of

Management Studies

Australia's economy boomed from 2002 to the beginning of 2008, largely driven by strong Chinese demand for its commodity exports. According to the short-run model presented in KOM Chapter 15, would you expect the Australian dollar (A$) to have appreciated or depreciated vis-à-vis the U.S. dollar over that five-year period? Why? What actually happened?

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