n) Match each of the following statements in Column I with the correct answers or statements in Column Il according to Exchange Rate Determination models. Answer question 24 – 28 according to the four diagrams below. S(AUD/USD) S(AUD/USD) S, S, Diagram A Diagram B S(AUD/USD) S(AUD/USD) S, So Diagram C Diagram D Column I Column II A. Diagram A 62. The Australian cash rate is relatively higher than the US cash rate; hence the US dollar will deprecate in value. B. Diagram B 63. The US economic growth rate is relatively higher than the Australian growth rate; the Australian dollar will appreciate from the current account perspective. C. Diagram C D. Diagram D 64. The US economic growth rate is relatively higher than the Australian growth rate; the US dollar will appreciate from the financial account perspective. E. None of the above

ENGR.ECONOMIC ANALYSIS
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Question
n)
Match each of the following statements in Column I with the correct answers or statements in
Column Il according to Exchange Rate Determination models. Answer question 24– 28
according to the four diagrams below.
S(AUD/USD)
S(AUD/USD)
S
S,
Diagram A
Diagram B
S(AUD/USD)
S(AUD/USD)
S,
So
Diagram C
Diagram D
Column I
Column II
A. Diagram A
62. The Australian cash rate is relatively higher than the US
cash rate; hence the US dollar will deprecate in value.
B. Diagram B
63. The US economic growth rate is relatively higher than the
Australian growth rate; the Australian dollar will
appreciate from the current account perspective.
C. Diagram C
D. Diagram D
64. The US economic growth rate is relatively higher than the
Australian growth rate; the US dollar will appreciate from
the financial account perspective.
E. None of the above
65. Due to a higher inflation in Australia than the US, the
Australian dollar will depreciate.
66. The Australian government imposes tariff on all imports
from the US, the Australian dollar will appreciate.
Transcribed Image Text:n) Match each of the following statements in Column I with the correct answers or statements in Column Il according to Exchange Rate Determination models. Answer question 24– 28 according to the four diagrams below. S(AUD/USD) S(AUD/USD) S S, Diagram A Diagram B S(AUD/USD) S(AUD/USD) S, So Diagram C Diagram D Column I Column II A. Diagram A 62. The Australian cash rate is relatively higher than the US cash rate; hence the US dollar will deprecate in value. B. Diagram B 63. The US economic growth rate is relatively higher than the Australian growth rate; the Australian dollar will appreciate from the current account perspective. C. Diagram C D. Diagram D 64. The US economic growth rate is relatively higher than the Australian growth rate; the US dollar will appreciate from the financial account perspective. E. None of the above 65. Due to a higher inflation in Australia than the US, the Australian dollar will depreciate. 66. The Australian government imposes tariff on all imports from the US, the Australian dollar will appreciate.
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