Question: ________._..-- Question 5. (This question has two parts a and b) Part (a) The current Australian foreign exchange value? at equilibrium is 0.7 US dollar

________._..-- Question 5. (This question has two parts a and b) Part (a) The current Australian foreign exchange value? at equilibrium is 0.7 US dollar ($US) per Australian dollar. What will happen to the Australian foreign exchange value? in the two following different scenarios? a.1. This year, the inflation rate in Australia is higher than the inflation rate in the United States. Please elaborate your answer using the concepts of the demand curve for Australian dollars and the supply of Australian dollars. [2.5 marks]

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