6. If it is announced today that the interest rate in Australia is being reduced from 4% to 3% for only one period, and it is also announced today that the interest rate in the USA is also being reduced from 2% to 1% for only one period, what happens to the number of US dollars per Australian dollar today?

6. If it is announced today that the interest rate in Australia is being reduced from 4% to 3% for only one period, and it is also announced today that the interest rate in the USA is also being reduced from 2% to 1% for only one period, what happens to the number of US dollars per Australian dollar today?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 5QR

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