Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

From the article titled ‘Australian dollar's next stop? US65¢ predicted as commodity prices decline' (Australian Financial Review July 17, 2015), answer the following questions.

(a) Briefly summarise the main issues discussed in this article? [Not exceeding 200 words]

(b) Using Demand and Supply model of exchange rate determination briefly explain how AUD is determined in the forex market, and what factors influence its fluctuations.

(c) Using exchange rate data from Reserve Bank of Australia and graphs (monthly data of last three years) analyse the movement of AUD relative to that of the US dollar? Is it in line with the world commodity price movement during this period? Are there any other factors contributing to this behaviour of the Australian dollar?

(d) Do you think that the AUD will fall as low as US 65C by the end of 2016? Justify your answer. What advantages do you think Australia will have in such a scenario?

(e) If the market rate is US 65C then what action could the Reserve Bank of Australia take in order to maintain the exchange rate at US 70C, and what side effects might this action have on the Australian economy? Do you think that such actions would be effective?

Word Limit: 2000 words maximum. Word count (excluding references) must be provided. Excess words will not be marked.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91418993
  • Price:- $90

Guranteed 48 Hours Delivery, In Price:- $90

Have any Question?


Related Questions in Microeconomics

Question from the early 1950s through 1973 the japanese

Question: From the early 1950s through 1973, the Japanese economy grew at an average annual rate of almost 10%. It then slowed down to 5% per year from 1973 through 1991, and 1% per year from 1992 through 1998. (A) What ...

Question mr paul is consuming products x and y optimally

Question: Mr. Paul is consuming products X and Y optimally and deriving total utility of 10 utiles. when his budget is increased from K80 to k81, his utility increases from 10 utiles to 10.1 utiles. a) what is the margin ...

Question the c declined an average of more than 3 per year

Question: The C$ declined an average of more than 3% per year relative to the US$ during the 1990s, yet the inflation rate in Canada was almost 1% lower. Also, Canada has a positive trade balance, compared to the huge US ...

Question two random variables x and y have the probability

Question: Two random variables X and Y have the probability functions: A joint probability is:P(X = 2 and Y = 1) = 0.2 (a) Find the conditional probability function of X given Y = 1. (b) Find the conditional mean of X gi ...

Question suppose that a consumer has income y in the

Question: Suppose that a consumer has income y in the current period and income y' in the future and faces proportional taxes on income in both periods. That is, the consumer pays a tax ty in the current period and t'y'i ...

Question you are on the city council and are considering a

Question: You are on the city council and are considering a law to control rents below the free-market rent. What would be the effect of this rent control law in the short-run? In the long run? Be sure to explain why you ...

Question consumer reports has hired you to study gas

Question: Consumer Reports has hired you to study gas mileage obtained by the new Federico Fellini Fuel-Efficient Ferrari. Specifically, you are asked to test the manufacturer's claim that, on aver-age, the car travels 3 ...

Question consider a situation in which a risk-neutral

Question: Consider a situation in which a risk-neutral principal wishes to contract an agent to work on a project. The project produces output x = e + e where e is the agent's effort and e is a normally distributed rando ...

Question new york state is one of the largest states in the

Question: New York state is one of the largest states in the nation, but most of it comprises farmland. New York state is the 3rd largest dairy producer in the nation and competes for the top spots in Apple production an ...

Question chapter 8 explained that thousands of new grocery

Question: Chapter 8 explained that thousands of new grocery products are developed every year. Often the grocer will give the developer of a new product the chance to sell it through the grocer's stores, but only if the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved