Question: The current spot exchange rate is USD 0 . 7 / AUD . Which of the following statements is correct? a . If USD's value

The current spot exchange rate is USD0.7/AUD. Which of the following statements is correct?
a. If USD's value decreased by 10% against the AUD, the new exchange rate would be USD0.63/AUD.
b. If Relative Purchasing Power Parity holds, and the expected inflation rates in the US and in Australia are 5% and 10%, the exchange should change to USD0.7333/AUD.
c. If Absolute Purchasing Power Parity holds and price index in the US is USD140, then price index in Australia should be AUD200.
d. If the economic uncertainty increases in the US but not in Australia, the AUD would depreciate against USD.
Clear my choice
 The current spot exchange rate is USD0.7/AUD. Which of the following

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